Senators discuss granting Marcos powers for excise tax reduction amid rising fuel costs

Senators are set to discuss the possibility of granting President Ferdinand "Bongbong" Marcos Jr. emergency powers to reduce excise taxes on petroleum products once the price of Dubai crude exceeds $80 per barrel, Senate President Vicente “Tito” Sotto III said Tuesday. 

Sotto said that he is personally in favor of giving Marcos the authority if it would help cushion the impact of expected spikes in fuel prices on Filipinos. 

“Pag-uusapan muna namin kung paano. Siyempre ako, on a personal opinion, basta’t makakatulong at makakaangat sa magiging maaaring problema natin dito sa nangyayari sa Middle East, siyempre payag ako,” the Senate President said in an ambush interview. 

(We will talk about this first. In my personal opinion, as long as it can help and alleviate the possible problems that may arise amid what’s happening in the Middle East, of course, I am in favor of it.) 

Asked about the implications should the fuel excise taxes be cut, he said, “‘Pag-usapan namin kung paano maiiwasan na ganon. Kung sakali man, ang pagkakaalam ko ay meron pa atang two or three months na reserve tayo.”

(We’ll talk about how to avoid that. As far as I know, we still have two or three months in reserve.) 

“Ayon sa Pangulo, kung gano’n yung statement niya…ito naman ay baka hindi tumagal. So we might be worried about something that we should not be worried about at this point. So in the meantime, pag-aralan namin,” he added. 

(According to the President, if his statement is true… this situation may not last. So we might be worried about something that we should not be worried about at this point. So in the meantime, let's study this.) 

Marcos said on Tuesday he would talk to congressional leaders to secure authority to reduce excise taxes if Dubai crude exceeds $80 per barrel. 

Energy Secretary Sharon Garin said the global price of Dubai crude was already hovering at about $79 a barrel—just a shade under the $80 mark.

Sotto thus called on businessmen not to take advantage of the situation. 

“Kailangan sitahin ng gobyerno ‘yun. Hindi puwedeng gano’n. May reserve pa naman tayo. Bakit biglang sasamantalahin naman nila? ’Wag naman sana manamantala ‘yung mga ibang negosyante,” he said. 

(The government needs to call them out. That shouldn’t be the case. We still have a reserve. Why would they suddenly take advantage of it? I hope other businessmen don't take advantage of it.) 

Meanwhile, Senator Sherwin Gatchalian, chairman of the Senate committee on finance, floated the possibility of P300 billion in revenue losses should the fuel excise tax be suspended.  

“Maraming beses itong napag-uusapan. It's around 300 billion ang mawawala. It's a substantial amount na mawawala,” Gatchalian said in an ambush interview. 

(This has been discussed many times. Around 300 billion may be lost. It's a substantial amount that will be lost.) 

“We have to also remember that we came from a very low growth last year. So 4.4%, which is below target. ‘Pag below target ‘yan, effect niyan ang collection mo, below target rin (if it's below target, its effect on your collection will also be below target),” he added. 

Senator Bam Aquino, on the other hand, filed Senate Bill No. 1923, seeking to grant Marcos the authority to suspend the excise tax on petroleum products during national or global economic emergencies.

The proposed measure also mandates the Secretary of Finance, upon the recommendation of the Commissioner of Internal Revenue, to issue the necessary implementing rules and regulations within thirty days from the law’s effectivity.

Senator Joel Villanueva also backed calls to suspend the excise tax on fuel by filing Senate Bill No. 1922. 

“Our proposed mechanism also provides for the automatic lifting of such suspension once global oil prices stabilize, thereby preserving fiscal discipline and revenue predictability,” Villanueva said.

Senate Majority Leader Juan Miguel “Migz” Zubiri also supported proposals to give Marcos authority, urging fellow lawmakers to treat the request as an urgent consumer protection measure. 

“I am in favor of granting the president those powers to be able to lower the excise tax on fuel. That move will definitely help cushion the impacts of high fuel costs due to the ongoing conflict in the Middle East,” Zubiri said in a statement. 

“We must act immediately so that it can help temper sudden spikes in the prices of important commodities such as food and electricity. The President has my full support for that move and request,” he added. –NB, GMA Integrated News