Palace: Suspending excise tax on oil needs reco from DOF, DBCC

The Palace on Monday said that suspending excise tax on oil amid the unabated oil price increases will need a recommendation from Finance-related government agencies.

Acting presidential spokesperson Karlo Nograles made the response in connection with oil prices reaching above $105 a barrel for the first time since 2014 last February 24 when Russia launched attacks on Ukraine.

This development has already prompted Germany to halt the approval of Nord Stream 2 gas pipeline project from Russia, and other countries have also slapped varying economic sanctions on Russia involving banks, oil refineries and military equipment.

"It (suspension of excise tax on oil) will begin with the recommendation from the DOF (Department of Finance). The basis [for next move] is its recommendation, then they will have a dialogue with the DBCC (Development Budget Coordination Committee)," Nograles said during the Palace briefing.

"From there, they will submit their recommendation to President Duterte. Let us take it from there, Nograles added.

A petition for a P5 fare hike in public transport and increase in minimum wage amid the increasing oil prices have also been called for by various sectors, but the Palace is adamant that such measures need further discussion.  

"On fare hike, there is already a pending petition before the LTFRB (Land Transportation and Franchising Board). Let us let the process take its course," Nograles said.

"On wage hike, it needs to pass through the regional wage board which determines the wage level for each region," he added. — Llanesca T. Panti/RSJ, GMA News