DOF: No timeline yet on suspension of excise tax on fuel

There is no timeline yet for the implementation of the law allowing President Ferdinand Marcos, Jr. to suspend or reduce excise tax on fuel amid an exponential rise in oil prices due to the Middle East armed conflict, the Finance Department said Monday.

Finance Undersecretary Rolando Ligon, Jr. said this during Day 2 of the briefing by various government agencies on the implementation of Executive Order 110, declaring a state of national energy emergency and authorizing unified package for livelihoods, industry, food, and transport sectors.

“We're still awaiting the instructions from the Office of the President with regards the lifting of the excise tax. If the Office of the President releases it today, the effectivity will be one to two days,” Ligon told the House’s Legislative Energy Action and Development Committee.

The law allowing President Marcos, Jr. to suspend or reduce excise tax on fuel was signed into law last March 25.

“Right now, wala pa pong directive sa amin. Hinihintay pa po namin. Once the President issues an Executive Order on suspension of imposition of excise taxes on fuel, the Finance department will be issuing necessary memoranda to the Bureau of Customs (BOC),” Ligon added.

In a separate press briefing, Palace Press Officer Undersecretary Claire Castro said an announcement would be made by the President on Tuesday, April 14. 

''Bukas po ay magkakaroon muli ng UPLIFT meeting at after the meeting, ibibigay po namin sa inyo ang pinaka-update at mayroon na po kaming iaanunsiyo,'' Castro said. 

(Tomorrow, the UPLIFT committee will have a meeting and after that meeting, we will give an update and an announcement will be made.)

The suspension of the excise tax on petroleum products will reduce oil prices by P6 per liter for diesel and P10 per liter for gasoline, according to the Department of Economy, Planning, and Development (DEPDev).

READ: What do we pay for in a liter of fuel?

Ligon, however, said the suspension of excise tax on fuel will only apply to new inventory or supply of oil, not the existing supply already in the country.

“Yes [it is only for new inventory]. It will be hard [to implement suspension]…with regards to administrative feasibility, reducing the excise tax dues on fuel supply that are already here,” he added.

House ways and means panel chairperson and Marikina Second District Rep. Miro Quimbo contested this, saying refund is not the way to implement the suspension to begin with.

“We are not asking you to take the excise tax back. What we are saying here is to give them [oil companies] credit for the amount [of excise tax] that they have paid in advance. So that once the suspension is lifted, we can start applying that,” the lawmaker said.

Quimbo said implementing such credit line scheme is doable.

“Can you not do that? You have an inventory coming from the BOC of the amount that they have paid.  We can even see there which gas companies are not paying excise tax and smuggling their supply,” he said.

Ligon replied by saying Quimbo’s argument will be considered, but the solon demanded a categorical answer.

“We will consider that, Mr. Chair. You've been considering that for quite some time. I think we need a categorical answer. You have to tell us it's impossible to implement or not. Because otherwise, the pronouncement of the President will not be felt immediately, which is needed by our people,” Quimbo said.

“We need a categorical answer coming from you. When we say immediate, it's as soon as the President announces the following day, we will reduce regular premium by P10, diesel by P6, kerosene by P4.50, and thereabouts,” he added.

Ligon responded that the DOF will await for the directive of the Office of the President on whether the suspension on excise tax will also cover those inventories already here in the Philippines.—with a report from Anna Felicia Bajo/AOL, GMA News