By HANNAH TORREGOZA
SENATOR Joseph Victor “JV” Ejercito yesterday renewed his call for state economic managers to consider suspending the next round of excise tax increases scheduled in January 2019 to cushion the impact on consumers.
Ejercito pointed out that under the Tax Reform for Acceleration and Inclusion (TRAIN) law, excise tax on oil and other petroleum products can be suspended if or when Dubai oil prices reaches $80 per barrel.
“I urge our economic managers to consider postponing the next round of increases in excise taxes this January 2019,” Ejercito said in a text message to reporters.
“With crude oil at $83 per barrel and a 6.4 percent inflation rate, we need to soften the impact on our people,” he said.
“TRAIN allows suspension of hikes if it reaches $80 for 3 months,” Ejercito stressed.
Ejercito is among the senators pushing the government to suspend the second round of the TRAIN law in 2019 after current fuel prices have gone up beyond the government’s expectations.
The benchmark Brent reached a high of $83.32 – the highest level in almost four years amid supply concerns before US sanctions against Iran come into force next month.
This compelled oil companies to raise gasoline prices by P1 per liter, diesel by P1.35 per liter and kerosene by P1.10 per liter last Tuesday.
Oil companies raised gasoline prices for the eighth consecutive week and diesel and kerosene prices for the sixth successive week.
Sen. Paolo “Bam” Aquino IV, also echoed Ejercito’s call saying he is the first lawmaker to call for a stop to the additional excise tax on fuel
“The government should halt the P2 levy on oil products come January 2019 and help alleviate the rising prices,” Aquino said.
In a privilege speech on Wednes day, Aquino said the Department of Finance (DoF) should come up with a process that would properly implement the safeguard to help ease the burden of Filipinos due to high prices of food and other goods.
”Let’s call on the DoF to issue clear and actionable guidelines, timelines, rules and regulations on how the suspension can possibly work,” Aquino said.
“Sa round 1 pa lang ng taas-buwis sa petrolyo ng TRAIN Law, bugbog sarado na ang mahihirap. Baka sa round 2 ngayong Enero, ma-knock out na tayo,” he warned.
“Dapat gamitin ng gobyerno ang prenong ito sa ating batas para makatulong sa mga mahihirap na nalulunod sa taas presyo,” he added.
“The government should use this provision that would put the brakes on the excise tax so as to help our poor constituents who are already reeling from the high prices,” said Aquino.
