DOE issues show cause order vs. several gas stations imposing P2 excise tax

The Department of Energy issued on Friday a show cause order against at least 20 gasoline stations for imposing a P2 excise tax on their petroleum products with an advisory to the agency.

According to its regulation, the DOE is supposed to check the delivery receipts of the stations for comparison with the declared inventory of oil companies, to see whether the supply in the pump machine is new or old.

To date, less than 20 percent of 8,000 gasoline stations have imposed the second tranche of excise tax because of the old stock of petroleum in the market, according to a report by Mark Salazar on GMA News TV's "Balitanghali."

DOE estimates that new supplies of petroleum products will be available by February, where other retail stations could then impose the excise tax.

The DOE found out in a random inspection that two retailers in Makati City have imposed the P2 excise tax without notice.

Signed into law by President Rodrigo Duterte in December 2017, the proposed Tax Reform for Acceleration and Inclusion (TRAIN) Act expanded the value-added tax (VAT) base and reduced personal income taxes starting January 2018.

The TRAIN law imposed an excise tax of P2.50 per liter on diesel, from zero, in 2018, and P7.00 on gasoline during the first tranche.

Starting 2019, the excise taxes on diesel will go up by P2.00 to P4.50 per liter and on gasoline by P9.00. —Jamil Santos/ LDF, GMA News