Marcos: Removing VAT on fuel will only help 'petroleum market'

President Ferdinand ''Bongbong'' Marcos Jr. said Monday that removing value-added tax on fuel products would only help the ''petroleum market.''

''You know, here's the thing with the VAT—especially the VAT on oil, on petroleum products.
The VAT on petroleum products, we are going to get a windfall profit from that because tumaas ‘yung presyo ng krudo,'' Marcos said.

''And because of that, all the importations we will have at the present VAT rate, we will get a – we will get funds – extra funds from that. Those… If we – if we take away the VAT on petroleum products, it will only help the petroleum market,'' he added.

Marcos emphasized that what the country needs is ''funding to help the entire society.''

''Hindi puwedeng – ‘yun lang – titingnan lang natin is the petroleum, petroleum, petroleum. Kasi sinasabi ng mga tao, bakit puro transport workers lang ang tinutulungan ninyo? Paano kami? Bakit the other…? We also have to take care of the other sectors,'' he said.

Energy Secretary Sharon Garin said that the estimated revenue loss is around P170 billion per year once the VAT on fuel products is removed.

An amendment to the law is needed to remove VAT on petroleum products, according to Garin.

Earlier, Marikina Representative Miro Quimbo said the removal of VAT on fuel products amid the surging fuel prices will only worsen the country’s situation as the Middle East crisis lingers.

Meanwhile, Marcos ensured that the proposal would still be studied.

''We will still examine it. You know, like I keep telling you, hindi – there is nothing that we are not looking at as a possible option. We are looking at all the options. If the time comes that it really calls for the – if the time will come that VAT should be brought down for whatever products, then we will certainly study it very well,'' he said. 

To recall, oil prices have increased since the US-Israeli forces launched airstrikes on Iran last February 28, prompting the latter to retaliate.

Manila sources 98% of its crude oil supply from the Middle East. Due to the tension, fuel prices have already breached P100 per liter for the past two weeks, burdening especially the transport sector.—LDF, GMA News