House panel OKs bill allowing Marcos to suspend or cut excise tax on fuel

The House ways and means panel on Tuesday approved an unnumbered substitute bill allowing President Ferdinand "Bongbong" Marcos, Jr. to suspend or reduce excise tax on fuel amid the conflict between the US-Israel forces and Iran.

The bill specifically allows the President to reduce excise tax on fuel products for six months at the maximum, provided that the average Dubai crude oil price exceed US$ 80 per barrel for one month immediately preceding the suspension or reduction of the excise tax. 

Likewise, the bill provides that the President will only have such additional authority until December 31, 2028.

The price of Dubai crude oil already breached US$100 as of March 9.

Quimbo said that moving forward, the measure is expected to allow the President to suspend the collection of excise taxes on fuel and for the already paid excise taxes to be considered as tax credit of oil companies. 

"The best way is to suspend the collection of excise taxes and allow them a tax credit for the excise taxes they already paid [prior to the approval of the measure]. That way, can implement the measure immediately. We won't need to wait for the oil firms to use up all their inventory [of fuel supply]," he said.

Bayanihan bill

Likewise, Quimbo said the House leadership will draft a bill akin to the Bayanihan measures passed by Congress during the COVID-19 pandemic to cushion the impact of rising fuel costs. 

"Why like the Bayanihan? Because we have a constitutional prohibition. A bill has to have only one subject matter. So when you pass a bill... if that is a tax bill, you cannot include other subjects there such as oil deregulation, agrarian reform. But because of extraordinary times, the Speaker said, we can have a measure like that of the Bayanihan bills," he told reporters.

"Because of how important and significant the problem is, the bill can be all encompassing, including a provision that would strengthen the DOE so they can monitor and they will have the administrative strength to sanction those gas stations which  engage in overpricing," he added.

Meanwhile, the Senate committees on ways and means and energy will conduct a hearing on Wednesday, March 10, on at least five bills seeking to allow the President to suspend the excise tax on oil. 

Energy Secretary Sharon Garin earlier expressed support for the measure, saying a two-month suspension could lower diesel prices by as much as P6 per liter.

Earlier in the day, Palace Press Officer Undersecretary Claire Castro said the President will wait for the committee report on the proposed measure before certifying it as urgent. —AOL, GMA Integrated News