Marcos issues EO on suspending excise tax on LPG, kerosene

President Ferdinand “Bongbong” Marcos Jr. has issued an executive order suspending the excise taxes on LPG and kerosene. 

The temporary suspension shall be subjected to a monthly review, according to Executive Order No. 114.

RED: What to expect from LPG, kerosene excise tax suspension

''The excise taxes on LPG, except when used as raw material for production of petrochemical products or used for motive power, and kerosene, except when used as aviation fuel, are hereby fully suspended for a period of three months from effectivity of this Order,'' the EO read.

The excise taxes on these petroleum products shall automatically revert to the rates prescribed under Section 148 of the National Internal Revenue Code of 1997, as amended, without need of further assistance, upon the occurrence of any of the following, whichever comes first:

• One week after the one-month average Dubai crude oil price based on MOPS falls below USD80 per barrel, as certified by the Department of Energy; or 
• Upon expiration of the duration provided under Section 2 hereof. 

Marcos on April 13 announced the suspension of excise taxes on LPG and kerosene, a move aimed at easing the burden on households amid volatile global oil prices driven by tensions in the Middle East.

The authority stems from Republic Act No. 12316, signed on March 25, which grants the President emergency powers to suspend or reduce fuel excise taxes upon the recommendation of the Development Budget Coordination Committee (DBCC), in coordination with the Department of Energy (DOE).

The law took effect this month, or 15 days after its publication and allows the exercise of such powers until December 31, 2028.

Prior to the suspension, excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law were set at P3.00 per kilogram for LPG and P5.00 per liter for kerosene.

With the suspension, the Department of Finance (DOF) said consumers may save around P36.96 per 11-kilogram LPG cylinder and P5.56 per liter of kerosene. —VAL, GMA News