Zarate calls for special session on oil excise tax suspension bill

Bayan Muna party-list Representative Carlos Zarate on Wednesday urged President Rodrigo Duterte to call for a special session of Congress to approve the proposed measure that aims to suspend excise tax on oil for at least six months.

According to Zarate, the national government should "take preemptive measures that will cushion the impact on the prices of commodities, including oil, due to the brewing tensions in Eastern Europe."

"Kaya pang magpatawag ng special session bago pa man magsimula ang campaign period ng local candidates. Kaya naman ding mag-blended session muna para umusad na ang panukala at kagyat na mapasa ito," Zarate said.

(Calling for a special session is still feasible before the campaign period of local candidates starts. We can also have a blended session to push this measure.)

"Hindi dapat hinaharang ng Department of Finance (DOF) ang suspensyon o pagtanggal na ng excise tax sa petrolyo, lalo na sa diesel, dahil kagyat nitong pabababain ang presyo ng langis at kahit paano ay magpapababa din sa presyo ng mga bilihin," he added.

(The DOF should not halt the suspension of the excise tax on oil products as this will immediately lower the price of fuel products and even the price of basic commodities.)

Zarate warned, if the excise tax will not be suspended, this may result in "price shocks" just like what happened in 2018 when the Tax Reform for Acceleration and Inclusion (TRAIN) law was enforced.

"Duterte and his economic managers cannot escape the blame now because their TRAIN law is punishing even more the people during this pandemic-aggravated crisis," he claimed.

The discussion on the proposed law recommending the reduction or suspension of the excise tax on fuel products amid their increasing prices has reached the plenary.

Meanwhile, Zarate also pointed out that "the supposed oil revenue losses can be offset by also suspending corporate income tax (CIT) cuts under the Corporate Recovery and Tax Incentives for Enterprises Act or CREATE, as also proposed by think tank IBON Foundation.

Zarate said IBON had noted that the government projects revenue losses of P115.8 billion in 2021, and Php101.8 billion in 2022 from CREATE’s CIT cuts.

"Reducing indirect consumption taxes such as on oil and increasing direct taxes on income makes the tax system more progressive," the progressive lawmaker said.

"This would offset their supposed losses and would give a much needed breather for our already very hard up consumers," he added.  —LBG, GMA News