Isko, Marcos Jr., Ping call for cut on excise tax on fuel amid price hikes

Presidential candidates on Thursday called for cuts in excise tax on petroleum products amid the recent series of price increases.

Manila Mayor Isko Moreno, standard bearer of the Aksyon Demokratiko for the 2022 national elections, said the government should lower the excise tax on fuel products and even on electricity to help ordinary Filipinos.

Moreno said he would cut the excise tax on petroleum products by 50% if he wins the presidential elections next year. He is also eyeing another 50% cut on electricity.

He said the cut on the excise tax of fuel products would immediately be felt by operators and drivers of public utility vehicles who were adversely affected by the pandemic as capacities in public transportations have been limited.

"To cushion the socio-economic impact of the pandemic, a 50% reduction in fuel excise tax can lower the power generation cost and another 50% cut on taxes on electricity would mean savings for the majority of our people, many of whom are jobless now due to the COVID-19 pandemic,” Moreno said in a press release.

Partido Federal ng Pilipinas (PFP) standard-bearer Ferdinand "Bongbong" Marcos Jr. urged Congress to suspend the excise tax on oil products to help the transport sector as, according to him, this would cut gasoline price by P10 per liter and diesel products by P6 per liter.

The price of kerosene, on the other hand, will go down by P5 per liter while the price of LPG will be cut by P3 per kilogram. according to the former senator.

"Amending the oil deregulation law with the intent of addressing the issue of runaway oil prices will take some time. This move to suspend the excise tax makes sense and will have an immediate positive impact on our people," Marcos said in a separate press release.

Partido Reporma standard bearer Senator Panfilo Lacson said the TRAIN Law that Congress passed a few years ago provided that the Department of Finance (DOF) may suspend the implementation of the increase of the excise tax on fuel upon the recommendation of the Development Budget Coordination Committee (DBCC) under certain conditions.

"I therefore urge the DOF Secretary to exercise that option under the law, given the unabated increase of the prices of fuel resulting in a heavy burden on the transport sector and the public in general," Lacson said.

The Department of Energy has sought Congress' help to grant the agency an authority to suspend excise tax on fuel amid the continued rise in oil prices.

Energy Secretary Alfonso Cusi said his department is discussing with the Department of Finance  “the possibility to suspend excise tax for the meantime,” however, this needs new legislation.

Cusi has said suspending excise tax can lower pump prices by around P8 to P10 per liter.

The government is also studying how to reimplement its subsidy program for public transport drivers to alleviate the burden of higher fuel costs. -NB, GMA News