Pimentel urges Duterte to reconsider retention of fuel excise tax

Senator Aquilino “Koko” Pimentel III on Sunday called on President Rodrigo Duterte to reconsider his decision to retain the excise tax on fuel, stressing that its temporary suspension was the “best and most fair” response to the series of big-time oil price hikes.

“Suspend the excise tax. Suspend the VAT (value-added tax) collection. Kasi dalawa kasi ‘yan eh. Pagpasok ng oil products sa teritoryo ng Pilipinas, may excise tax. Pagbili ng consumer sa station or sa anumang tindahan, meron pang VAT,” he said during a Super Radyo dzBB interview.

(There are two things. When oil products enter the territory of the Philippines, there is an excise tax. When a consumer purchases a product from a store, there is also VAT.)

Pimentel made the remark following Duterte's recent approval of a P200 monthly allowance or "ayuda" for poor households for an entire year to ease the impact of fuel price hikes.

Asked if he was content with such an amount, Pimentel said, “Hindi. Na-shock nga ako doon eh (No. I was shocked about that).”

He explained that it was better for the government to temporarily suspend the excise tax on fuel instead of distributing P200 to the “poorest of the poor,” considering that it may even be used for politics now that the May 9 polls are nearing.

“Ang the best na way sana nga, temporary lang naman ‘to, naghahanap tayo ng temporary relief from the surge ng presyo ng oil products dahil nga sa kaguluhan sa Ukraine at Russia. Temporary. So, sana po. ‘Yun ‘yung best at pinaka-fair ‘yun, wala tayong listahan na pinaguusapan doon,” he added.

(This is only temporary as we are looking for temporary relief from the surge in the price of oil products due to the conflict in Ukraine and Russia. This is the best and most fair way because we are not talking about any list there.)

Pimentel pointed out that there might be other families that might ask why they are not included in the list of poor households that will be given financial aid when they also suffer from the impacts of fuel hikes.

“If the President can suspend the entire excise tax, therefore he can also suspend a portion of the excise tax. ‘Yun na po ang pag-aralan nila, from 100%, all the way down to 50%, pwede nilang pag-aralan. Better po ito kesa sa mag-P200 a month tayo sa poorest of the poor na dependent sa listahan,” he said.

(They should study reducing the tax from 100% down to 50%. This is better than spending P200 a month on the poorest of the poor that is dependent on a list.)

Finance Secretary Carlos Dominguez III on Tuesday also admitted that the  P200 monthly aid for a year for poor households might not be enough. But this was what the government could provide as of this time.

Meanwhile, other senators on Wednesday also said the P200 monthly cash assistance to be given to poor families for a year was not enough. They also said the excise tax on fuel should be temporarily suspended. — DVM, GMA News