BSP insists on no tax suspension on fuel products

BSP insists on no tax suspension on fuel products

BSP governor Benjamin Diokno. (Photo: Philippine Star)

By Tracy Cabrera

MANILA — While acknowledging the lapses in the implementation of assistance to public utility drivers (PUDs) who have been bearing the brunt of higher oil prices, the Bangko Sentral ng Pilipinas (BSP) insists that the suspension of excise taxes on petroleum products would not be beneficial at this time.

Outgoing BSP governor Benjamin Diokno said that the incoming Marcos administration is not inclined to suspend excise taxes on fuel products any time soon even as he stressed that despite the new round of pump price hikes which became effective today, June 7, it would still be unwise to cut taxes on fuel.

“When you cut taxes on fuel, it will benefit everybody, the rich, the poor, the middle income, and when there is a need to put it back, restore the cut because things have normalized, it’s very difficult to push such measures before Congress,” Diokno pointed out.

In addition to this, he also opined that “it’s a wrong move to cut taxes at this time.”

The BSP governor enthused that targeted assistance to jeepney drivers, farmers, and fisherfolk would be more efficient than cutting taxes, and the government “will continue that approach.”

Asked to comment on the mounting complaints from PUDs who have not yet received the promised P6,500 fuel subsidy by the government, Diokno acknowledged that it’s a “problem of implementation.”

“To me, it’s a problem of implementation. We’ll make sure implementation will be efficient and will be timely,” he stated.

As of this morning, various oil companies imposed another round of price increases; P2.70 more per liter of gasoline, P6.55 per liter of diesel and P5.45 per liter of kerosene.

According to the Department of Energy (DoE), net price increases since the start of the year for gasoline, diesel and kerosene stood at P23.85, P30.30 and P27.65 per liter, respectively, as of May 31. (ai/mtvn)

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