Metro Manila, Philippines – President Ferdinand Marcos Jr. has certified as urgent the bill granting the chief executive powers to remove or suspend the excise tax on fuel products during national and global economic emergencies, in response to the Middle East crisis.
On Thursday, March 12, Malacañang wrote to House Speaker Bojie Dy expressing the “necessity of the immediate enactment” of House Bill 8418, which hurdled second reading on Thursday, March 12.
The earliest the House can approve it on final reading would be on Monday, March 16.
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.
It 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.
Dubai crude oil – which the country mainly imports – traded at $113.55 per barrel on March 11, from $105.13 the previous day.
