Marcos yet to decide on fuel excise tax suspension – Palace

MANILA, Philippines — President Ferdinand Marcos Jr. has yet to decide whether to suspend or reduce the excise tax on fuel even as Dubai crude oil prices reached the $80-per-barrel threshold for considering such a measure.

Presidential Communications Office Undersecretary Claire Castro said on Wednesday that the Development Budget Coordination Committee (DBCC) had yet to submit its final evaluation or recommendation on the possible fuel tax adjustment.

The issue is expected to be discussed during the 11th Economy and Development Council meeting in Malacañang on Wednesday, where transportation concerns were also on the agenda, she added.

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“Once the recommendation is there, the president acts immediately,” Castro said.

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In March, Marcos signed Republic Act No. 12316, allowing the President to suspend or reduce fuel excise taxes if the Dubai crude oil price reaches or exceeds $80 per barrel for one month.

The Department of Energy (DOE) on Tuesday certified that the threshold had already been breached.

READ: DOE backs DOF move to revive kerosene, LPG tax relief

Finance Secretary Frederick Go earlier said his recommendation to the DBCC would mirror the previous relief package, with the excise tax suspension lasting for three months. It would cover only kerosene and LPG and exclude gasoline and diesel, which carry higher excise tax rates.

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A full suspension of excise taxes would reduce the price of an 11-kilogram LPG tank by P37 and cut P5.65 from the price of kerosene per liter.

The suspension was first allowed under Executive Order No. 114, signed in April.

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Meanwhile, Malacañang assured the public that government relief initiatives, including the expanded Unified Package for Livelihoods, Industry, Food and Transport (Uplift) program, are in place to cushion the impact of rising fuel prices driven by tensions in the Middle East.

READ: Gov’t earmarks P22.79-B savings for Middle East crisis assistance

Castro said the government could tap savings to support the continued implementation of the expanded Uplift program.

In July, the Department of Budget and Management (DBM) identified P22.79 billion in government savings that can be used to finance assistance programs for vulnerable sectors affected by the ongoing crisis in the Middle East.

The government prioritizes using the pooled savings to fund the expanded Uplift Assistance program, which provides assistance to farmers, workers, commuters, overseas Filipino workers, and Filipino families affected by the conflict.

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The funding for the expanded P12.375-billion Uplift package for 7.5 million poor and near-poor Filipino families announced by Marcos was financed through identified savings. /mcm