SENATOR Aquilino “Koko” Pimentel III again filed his proposed bill that seeks to automatically suspend the imposition of excise tax and Value-Added Tax (VAT) on petroleum products once its prices soar in the world market.
In his bill, the National Internal Revenue Code (NIRC) shall be amended, charging of excise tax and VAT shall be temporarily suspended once the price of oil hits or overshoots US$80 per barrel based on the Mean of Platts (MOPS) Singapore, which is used by the Philippines as basis.
Based on the existing Tax Reform for Acceleration and Inclusion (TRAIN) Law, a 10-percent excise tax is imposed per liter of gasoline, and 6 percent for every liter of diesel, aside from the 12-percent value-added tax.
In proposing the bill, Pimentel said that although the Philippines has no control over the price of petroleum it imports, the government can still help lower the price by temporarily suspending taxes.
It should be done now that prices of petroleum products are so high, including prices of commodities.
President Marcos, even former President Duterte, already declined calls to suspend taxes on petroleum products because the government needed the funds.
However, under the rules of Congress, this proposed measure related to taxes should pass first in the Lower House before it can be approved by the Senate, and both Houses must approve the measure before it is sent to Malacañang for the Chief Executive’s signature.