DBCC didn't recommend VAT suspension for fuel products, says DOF exec

An official from the Department of Finance (DoF) said Tuesday that suspending the value-added tax (VAT) on fuel products was not included in the recommendations of the Development Budget Coordination Committee (DBCC) to President Ferdinand "Bongbong" Marcos Jr. 

"For now, it's not part of the recommendation and you would need legislation for that. Ang na-legislate lang po is suspension or reduction of excise, hindi po kasama ang VAT," Undersecretary Karlo Fermin Adriano said in a Palace Press briefing following the UPLIFT Committee meeting. 

On Monday, Marcos said 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 (crude prices increased)," Marcos had 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... If we take away the VAT on petroleum products, it will only help the petroleum market," he added.

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

An amendment on 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 would only worsen the country's situation amid the Middle East crisis. — VDV, GMA News