Metro Manila, Philippines – While senators welcome the suspension of excise taxes on LPG and kerosene, they are urging the administration to extend the same for diesel and gasoline soon to help sectors reliant on these.
“Nagtanggal nga sila ng excise tax pero hindi pa nila isinama ang diesel na siyang numero unong ginagamit ng ating mga driver, mangingisda, at magsasaka,” Senator Imee Marcos said in a statement on Tuesday, April 14.
[Translation: They removed the excise tax, but they did not include diesel, which is the primary fuel used by our drivers, fisherfolk, and farmers.]
She urged her brother, President Ferdinand Marcos Jr., to immediately widen the tax break.
“‘Wag na sana nilang unti-untiin ang pag-aanunsyo kada klase ng produktong petrolyo at idamay na nila ang krudo agad-agad,” she said.
[Translation: They should no longer roll this out piece by piece for every type of petroleum product and should include crude oil right away.]
Senator Erwin Tulfo said he agrees with the suspension of excise tax on cooking gas and kerosene, but finds it lacking. He said that when Congress deliberated on the bill granting the president the authority to suspend excise taxes, his understanding was it would cover all fuel products as pump prices skyrocket.
“I’m sure narinig na nila yun na kulang pa. Talagang naghihikahos na [I’m sure they’ve already heard that it’s not enough. People are really struggling],” he said.
“Why don’t we just wait? Siguro then in the next few days baka isunod na rin yung diesel at gas [Maybe in the next few days, diesel and gasoline will also be included],” he added.
Tulfo said the decision ultimately rests with the executive branch, which must balance consumer relief with the impact of billions of pesos in foregone revenues if excise taxes on all fuel products are suspended.
He had earlier pushed for the suspension not only of excise taxes but also the 12% value-added tax (VAT) on petroleum products, though he acknowledged this may not be feasible at present.
Meanwhile, at the House of Representatives, Cagayan de Oro 2nd district Rep. Rufus Rodriguez also urged economic managers to broaden the tax cuts, saying that the middle class was left behind.
He said the fuel subsidy – which provides ₱10 per liter reduction for public utility vehicle drivers – only includes the transport sector.
“What happens to the 45 percent middle class? 45 percent of our people. Wala. [None] They will be suffering so much,” Rodriguez said on Wednesday, April 15.
“I appeal to the DBCC (Development Budget Coordination Committee), the economic managers. The economic managers are concerned about more money from taxes to the government. That is for what? To be given to the people, the ayuda [aid]. Why would you just suspend excise tax, gasoline and diesel, and help everyone?,” he added.
During a Senate crisis committee hearing on Monday, Finance Undersecretary Karlo Adriano said the policy-making Development Budget Coordination Committee recommended limiting the suspension to LPG and kerosene as the “most efficient way” to deliver subsidies to the most affected sectors, noting that poorer households primarily use these products.
Committee chair Sherwin Gatchalian appealed to the executive to review the policy on a weekly basis to allow timely adjustments in response to fuel price movements.
NewsWatch Plus correspondent Lance Mejico contributed to this report
