DOF exec: Last tranche of fuel excise tax hike under TRAIN law to take effect Jan. 1, 2020

The third and final tranche of excise tax hike on fuel products will take effect on January 1, 2020, Finance Assistant Secretary Tony Lambino said Friday.

The Duterte administration’s Tax Reform for Acceleration and inclusion (TRAIN) law, passed in 2017, imposed a P2.50 per liter excise tax on diesel from zero and hiked the levy on gasoline to P7.00 per liter starting Jan. 1, 2018.

Fuel excise taxes has gone up by another P2.00 per liter since Jan. 1, 2019. This means that the excise tax on diesel will go up to P4.50 and gasoline to P9.00.

For the final round of excise tax hike, gasoline will have another P1 increase, P1.50 for diesel, and P1 for kerosene.

"'Yan na po ang pinaka maliit na adjustment, mas malaki pa po 'yung mga nauna," Lambino said in an interview on Dobol B sa News TV.

"'Yung huling adjustment sa fuel excise [tax] ay mangyayari po January 1, 2020," he said.

In a separate report by Lei Alviz on GMA News TV's Balitanghali, the Department of Energy reminded fuel companies that the third tranche of excise tax hike can only be imposed to new stocks imported beginning January 1, 2020.

"Nandoon pa rin 'yung tinatawag nating spot checking ng Department of Energy tapos sinusundan natin ng field operations natin. Ino-audit natin at malinaw na dapat nakasaad doon 'yung mga dates kung kelan 'yung mga imbentaryo nila nakuha, old stocks kelan naubos, kelan i-implement ang new stocks para protektado ang ating mga consumers," Energy Undersecretary and spokesperson Wimpy Fuentebella said.

Lambino said the excise tax adjustments imposed under the TRAIN law are need to fund the government's National Development Program.

"Ibig sabihin po niyan kailangan natin pondohan ang ating infrastructure program na may pinakamalaking multiplier effect sa economic growth at saka 'yung ating human investment —healthcare, education, social protection. Kaya po meron tayong tax reform program," the Finance official said.

The implementation of the increase in fuel excise taxes could be temporarily suspended should the average price of Dubai crude reach or exceed $80 per barrel for three months prior to the scheduled hike. — RSJ, GMA News