Finance execs back measure allowing Marcos to suspend fuel excise tax

The Financial Executives Institute of the Philippines (FINEX) is supporting the proposed measures allowing President Ferdinand Marcos Jr. to suspend or reduce the excise tax on fuel amid volatility caused by the Middle East conflict.

“FINEX strongly endorses the President's certification of urgent legislative measures that would allow the executive branch to suspend fuel excise taxes during periods of extraordinary global price shocks,” the group said.

Moreover, FINEX said it is backing the principle behind the measure as it “will help develop an economically sound plan that balances swift crisis response with fiscal discipline and transparency."

Marcos has certified House Bill No. 8418 as urgent, granting him the power to suspend or reduce the excise tax on fuel products for a maximum of six months, provided that the average Dubai crude oil price exceeds $80 per barrel for one month immediately preceding the suspension or reduction of the excise tax.

FINEX said that triggers on suspending or slashing fuel excise tax should include the following:

Clearly Defined Global Triggers

• Quick activation based on predetermined thresholds in global crude prices as well as geopolitical disruptions.
• Use of widely recognized benchmarks to ensure transparency.

Strict Time-Bound Parameters

• Pre-set maximum suspension periods to reinforce fiscal discipline.
• Mechanisms to prevent indefinite extensions without economic justification.

Public Fiscal Reporting During Suspension

• Periodic publication of fiscal implications to maintain clarity on government financing conditions.

Automatic Sunset Provisions

• Ensuring that normal taxation resumes once market conditions stabilize.
• Allowing predictability for businesses, investors, and consumers.

“This rules-based approach enables rapid, evidence?based policy response during crises while maintaining fiscal sustainability,” FINEX said.

“The Philippine economy is increasingly integrated into global markets. External disruptions—such as geopolitical conflicts and supply chain shocks—will keep challenging our nation's resilience,” it added.

The financial executives group said that  sound policy must focus on protecting the foundations of the economy, which include households, small enterprises, and the productive sectors that sustain communities across the country.

“Economic resilience ultimately begins at the ground level. Stability in farms, fishing communities, transport networks, and businesses strengthens the national economy as a whole,” it said.

“FINEX encourages collaborative, data-driven, and responsible government action in tackling this pressing economic issue,” it added.

FINEX said the government must act swiftly should global conditions worsen and inflationary pressures intensify by implementing a rules-based, time-bound suspension of fuel excise taxes and other fiscal measures to stabilize fuel prices. 

“The government must also institutionalize a long-term framework for future crises to ensure predictability, readiness, and disciplined economic management. FINEX is prepared to collaborate with policymakers, industry stakeholders, and economic leaders in developing prudent, time-sensitive measures that safeguard Filipino families while maintaining fiscal responsibility,” the financial executives group said. —AOL, GMA Integrated News