Metro Manila, Philippines – The House of Representatives on Wednesday, March 11, approved on second reading the bill granting the president the authority to suspend or remove the fuel excise tax during national or global emergencies as the Middle East crisis has triggered price spikes.
House Bill 8418 consolidated 17 measures and anchored on the version of Speaker Bojie Dy and Majority Leader Sandro Marcos.
The bill allows the president to invoke the powers on the following conditions:
- the average Dubai crude oil based on Mean of Platts Singapore has reached or exceeded $80 per barrel for one month immediately preceding the suspension or reduction order, and;
- a state of national emergency or calamity has been declared by the president and such conditions resulted in extraordinary increases in domestic fuel prices
The levy may be suspended within six months.
The president will have this prerogative until Dec. 31, 2028, or until the next administration.
Marikina Rep. Miro Quimbo said the bill is “a necessary step to extend a lifeline to the middle class, to our workers, and to the poor.”
“Given the challenge we are facing, we cannot afford any delay in passing this legislation that empowers the president to suspend excise taxes on fuel,” he said.
The bill will require the president to report to Congress within 15 days the estimated foregone revenues and the expected impact on inflation and economic activities of the suspension order after it has been issued.
The administration’s economic team earlier warned that suspending fuel excise taxes from May to December could result in around ₱136 billion in foregone revenues.
