Lacson: PH risks losing P320-B in revenue if VAT suspended

The country could lose over P320 billion in revenue if the government suspends the value-added tax (VAT), as it could affect the country’s gross domestic product (GDP), Senate Pro Tempore Panfilo Lacson said Sunday.

“Sa excise tax lang, assuming na aabot tayo sa 2027, nasa mga P200 billion yung impact sa foregone revenues,” Lacson told Super Radyo dzBB. “May suggestion pa na i-suspend pa ang VAT. Magdodoble iyan, papalo tayo ng P320 plus billion kung pati ang VAT i-suspend dahil sa krisis.

(From the excise tax alone, assuming we reach 2027, the impact on foregone revenues would be around P200 billion. There is also a suggestion to suspend the VAT, which would double the amount. We could reach over P320 billion if the VAT is also suspended because of the crisis.)

Lacson pointed out that further study is needed to determine if suspending VAT would be a good decision since it could also affect the country’s economy.

“Hindi ganoong kasimple kasi tinitingnan lang natin suspend, suspend (VAT) para masiyahan ‘yung mga kababayan natin pero ‘yung impact niya sa gross domestic product natin, sa GDP matindi. In the long term or in the medium term, tayo rin ang tatamaan,” Lacson said.

(It’s not that simple because we cannot just look at suspending the VAT to please our fellow countrymen. It could greatly affect our GDP. In the long or even medium term, we will be the ones affected.)

For now, Lacson believed that suspending the excise on petroleum products would suffice in easing the burden of Filipinos amid rising fuel prices.

In a statement, Senator Imee Marcos pushed for the passage of a measure increasing the income tax exemption to ease the burden of Filipinos who are enduring increasing fuel costs.

Senate Bill No. 2005 aims to increase the income tax exemption to P500,000 in annual income from the current P250,000, as well as to raise the tax-exempt ceiling for bonuses, including the 13th-month pay and other benefits, to P200,000 from the current P90,000.

President Ferdinand Marcos Jr. earlier said the Development Budget Coordination Committee will meet to discuss the emergency powers to suspend or reduce the excise tax on fuel products.

This came after Marcos signed into law the measure giving him emergency powers to suspend or reduce the excise tax rate on fuel.

The newly enacted law provides that any suspension or reduction of petroleum products shall be effective for a period not exceeding three months.

It also states that such measures may be applied to specific petroleum products and may be implemented as either a full suspension or a partial reduction of the applicable excise tax rates.

Diesel prices are expected to rise by P17 to P19 per liter, with regular diesel potentially reaching P165 per liter and premium diesel surpassing P170 per liter, as massive fuel price hikes due to the Middle East conflict are expected to continue next week

Transparency on penalties imposed on overpricing oil firms

Lacson also called for transparency on how gasoline stations and dealers caught selling fuel at high prices without proper authorization were penalized.

"Kailangan makakuha tayo ng feedback, ano nang nangyari sa sinasabi nilang nahuli nila. Kasi in flagrante yan, plain sight yan. Nakapaskil sa kanilang presyo na tinaas nila agad-agad di pa authorized ng DOE or ng ERC," he said.

(The public deserves feedback on what happened to the offenders who were caught in plain sight raising fuel prices without authorization from the Department of Energy or the Energy Regulatory Commission.)

In early March, two gas stations in Nueva Vizcaya and Eastern Samar faced charges for overpricing fuel products amid the surge in pump prices due to the Middle East conflict.

The Philippine National Police (PNP) said profiteering violations were uncovered during monitoring and validation efforts conducted with the Department of Energy (DOE), following reports from concerned citizens through the 911 hotline.

According to the PNP, 375 gas stations remain temporarily closed due to a shortage of petroleum products.

“As of April 2, 2026, out of 14,519 gas stations, 375 remain temporarily closed due to non-delivery of petroleum products. Some stations have reopened after restocking, while the PNP remains vigilant against profiteering, hoarding, and other unlawful activities. Nine cases have been filed, with others under case build-up across various regions,” the PNP said. —RF, GMA News