Transport and business groups are calling for the removal of the excise tax on fuel, to give them some leeway in the face of rising prices of goods, especially after diesel prices surged by as much as P24.50 per liter in the wake of the US-Israel war against Iran in the Middle East.
Transport groups have called for the removal of the excise tax and value added tax on fuel.
PISTON president Mody Floranda said sparing public utility drivers from the P6 per liter excise tax on diesel and P9 from VAT would be a great relief.
PARA Commuters’ Network convenor Nanoy Rafael labeled those taxes as ‘regressive’ because even those who are poor or those who don’t have any income are affected by the tax increase.
Philippine Chamber of Commerce and Industry (PCCI) chairman emeritus George Barcelon said they expect higher costs for manufacturing, logistics, and consumer goods, and the removal of the excise tax on oil “is primarily to mitigate the impact of the high price.”
He added that the conflict between Iran and the US-Israel alliance has greatly disrupted global trade routes and transportation, creating uncertainty that businesses have found difficult to navigate.
The House committee on ways and means at Congress has approved a substitute bill authorizing President Ferdinand Marcos Jr. to suspend or reduce excise taxes on petroleum products. The Senate is also set to tackle bills seeking the automatic suspension of taxes on petroleum products and granting the President emergency powers to reduce or suspend taxes on petroleum products.
The removal of the excise tax, and maybe even the value added tax, on fuel should be an easy decision to make during these uncertain and troubled times. The power and option to suspend or reduce such taxes when the situation calls for it would certainly provide our government and its leaders with a useful tool to address such problems if and when they occur. As long as the appetite for war of the current crop of world leaders and global superpowers cannot be curtailed by the United Nations or other rules-based agreements, our country has to put in place more safeguards to mitigate the effects of such disruptions and conflicts.*
