No increase in ‘Pantawid Pasada’ subsidy for 2019 —Diokno

The Duterte administration is putting on hold the scheduled hike in fuel subsidy program for franchises of public utility jeepneys (PUJ)  in line with the suspension of the second tranche of fuel excise tax increase in 2019.

“The Pantawid Pasada will be based on the existing tariff. So if we don’t implement the second phase of the tariff, then the adjustment will also be held in abeyance,” Budget Secretary Benjamin Diokno said in a breakfast forum in Manila on Wednesday.

PUJ franchisees are scheduled to receive a fuel subsidy of P20,514.82 for the whole of 2019, from P5,000 this year.

“Pantawid Pasada for next year is premised on the P2 adjustment. If the P2 adjustment is suspended, then the Pantawid Pasada benefits will be based on 2018,” Diokno said.

The Tax Reform for Acceleration and Inclusion (TRAIN) law imposed an excise tax of P2.50 per liter on diesel, from zero, and raised the levy on gasoline to P7 from P4.35 per liter.

The excise tax rate on diesel will go up to P4.50 next year and P6 per liter in 2020. For gasoline, the levy will go up to P9 in 2019 and P10 in 2020.

On Sunday, the Department of Finance announced that the government will put on hold the excise tax increase for 2019.

“Why should we increase the benefits if we did not adjust the rates?” Diokno said.

But despite the expected foregone revenue of P41 billion from suspending the fuel excise tax hike, the government is not cutting down the scheduled increase in cash transfers to poor families.

Section 82 of Republic Act No. 10963, or the TRAIN law, provides social mitigating measures for the poor until 2020, which including the unconditional cash transfer program for the poorest 10 million household.

Cash transfer beneficiaries now received a monthly grant of P200 or P2,400 for the whole of 2018. This will increase to P300 a month or P3,600 net year in line with the tax reform law.

“Merong unconditional cash transfer—hindi namin gagalawin ‘yon,” Diokno said.. —VDS, GMA News