Metro Manila (CNN Philippines, May 27) — President-elect Ferdinand “Bongbong” Marcos Jr. said he will look into other options to address rising fuel costs instead of suspending the oil excise tax.
“I think there are other ways to handle the increase and the disturbances that we are having in terms of the petroleum products that we are importing,” he told a briefing with select media on Thursday.
“We can support those areas na tinamaan kaagad ng pagtaas ng presyo ng langis–number one there is transport,” he said.
[Translation: We can support those areas immediately hit by the rise in oil prices–number one there is transport.]
Marcos cited the importance of transport for the resurgence of the economy, as the country is still recovering from the impact of COVID-19 pandemic.
“So in terms of oil excise tax, I think we still have to look at that very well if there is a commensurate return to somehow deferring the collection of the excise tax,” he explained. “Siyempre (Of course), the government needs the money, hirap ang gobyerno sa pondo ngayon [the government is struggling financially now].”
Lawmakers previously drummed up calls to suspend excise taxes on oil to help slash the cost of fuel by 6 to 10 pesos, when oil prices rose due to several reasons, including the Russia-Ukraine war.
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Marcos mentioned that he would support the suspension of fuel tax if there is a thorough study showing that doing so would be advantageous to the country.
He said he and his team will tackle the proposal in the first week of the administration.
“Pag sinabi mong tanggalin natin ‘yung excise tax o bawasan natin yung excise tax, ano ‘yung magiging effect doon?” he pointed out. “Talaga bang worth it ba na mawala yung income ng gobyerno kasi mas maganda ‘yung effect sa ekonomiya and makabawi tayo.”
[Translation: When you say we should remove the excise task or lower it, what will be the effect? Is it really worth it to lose the government income because it has positive effects in the economy and we can recover.]
“So we have to study that,” Marcos added. “It’s still a cost-benefit analysis and it’s not simple but that’s what we will have to do. But of course, that will be one of the areas under intense study in the first few weeks.”
