Poe seeks suspension of excise tax on gas, diesel amid price hikes

Poe seeks suspension of excise tax on gas, diesel amid price hikes

By Ernie Reyes

MANILA — Sen. Grace Poe urged Malacañang to consider temporarily
suspending the collection of excise tax on gasoline and diesel to ease
the burden of rising oil prices on jeepney drivers, delivery riders
and those transporting farmers’ harvests to the market.

In a statement, Poe said that the Tax Reform for Acceleration and
Inclusion law passed in 2017 imposed excise tax on petroleum products
beginning 2018.

The excise tax on diesel started at P2.50 per liter in January 2018,
increased to P4.50 in Jan. 1, 2019, and to P6 per liter in Jan. 1,

  1. For gasoline, the excise tax was at P8 per liter in January
    2018, went up to P9 in January 2019 and to P10 per liter in January
    2020.

“Domestic oil prices have been increasing for eight consecutive weeks.
The government can alleviate this heavy burden by suspending the
collection of the excise tax for now,” Poe said.

Food and transportation account for a big chunk of spending by
majority of Filipinos, she said.

“Suspending the excise tax on fuel meantime will help stave off
hunger, assist PUV drivers and delivery riders, and bring down the
cost of transporting goods,” Poe said.

The lady senator said that if we can lower the income taxes of
companies that rake in millions in earnings, temporarily suspending
the collection of excise taxes on fuel products should not be that
difficult.

According to budget documents, excise tax collection from fuels and
oils amounted to P42.7 billion in 2019 and was programmed to amount to
P41.6 billion in 2020. It is projected to amount to P47.9 billion this
year.

Income tax collection from companies and enterprises amounted to
P586.16 billion in 2019 and was programmed at P329.89 billion in 2020.
It is projected to amount to P304.83 billion this year.

Poe cited that the government had also lowered tariffs on pork and
rice this year even if the farmers and hog raisers begged it not to
because it will wipe out their livelihood.

“If the Department of Finance can move for the lowering of tariffs to
bring down the price of pork and rice, it should also move for the
suspension of excise tax on fuels in looking after the most
vulnerable,” Poe said. (ai/mtvn)

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