P170-B revenue loss if VAT removed from fuel products, says Garin

Energy Secretary Sharon Garin on Friday said around P170 billion per year is the estimated revenue loss once the value added tax (VAT) on fuel products is removed.

“How much revenue loss? I’m not from the Department of Finance but I think the estimate was about 170 billion per year ang VAT on petroleum products. So, that’s 170 billion also na mawawala sa collection,” Garin said in a press briefing.

An amendment on the law is needed to remove VAT on petroleum products, according to Garin.

Earlier, Marikina Representative Miro Quimbo said the removal of VAT on fuel products amid the surging fuel prices will only worsen the country’s situation amid the Middle East crisis.

To recall, oil prices have increased since the US-Israeli forces had launched airstrikes on Iran last February 28, prompting the latter to retaliate.

Manila sources 98% of its crude oil supply from the Middle East. Due to the tension, fuel prices have already breached P100 per liter for the past two weeks, burdening especially the transport sector. — BAP, GMA News