By HANNAH TORREGOZA
Senators on Thursday hailed the government’s decision to suspend the second round of increase in excise taxes on petroleum products amid soaring price of crude in the world market.
Senator Juan Edgardo “Sonny” Angara, chair of the Senate ways and means committee, said such move is a “step in the right direction” as lawmakers struggle to find ways on how to ease the public’s woes over high inflation.
“We commend President Rodrigo Duterte and his economic managers for staying sensitive to the plight of our people and adjusting with the times. This is the right decision given the high price of oil worldwide,” Angara said in a statement.
Department of Budget and Management (DBM) Secretary Benjamin Diokno on Wednesday announced that the President has approved the recommendation to suspend the increase in oil excise tax next year.
Last month, members of the Senate majority bloc wrote a letter to President Duterte asking for his support for the suspension of any further increase in oil excise tax.
He pointed out that Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law, provides for a safeguard mechanism wherein the scheduled increase in excise taxes on petroleum products shall be suspended when the average Dubai crude oil price for three months prior to the next increase reaches or exceeds US$80 per barrel.
In the first week of October, Dubai crude oil prices have breached the threshold, reaching Us$84.41 per barrel.
“We thank the President because he suspended it without having to wait before the year ends. This comes after our urgent personal appeal of the Senate majority to the President),” Angara said.
Angara said that this is not the first step the government has taken to address inflation, noting that President Duterte signed Administrative Order No. 13 removing non-tariff barriers and streamlining administrative procedures on the importation of basic agricultural commodities last September.
The move was meant to control the price increases on basic commodities such as rice, chicken, pork, and fish.
Angara also vouched that the rice tariffication bill, which the Senate has passed on third and final reading on Wednesday night, will bring down the prices of rice in the market, which is also a key driver of inflation.
“Filipinos pay twice as much for rice compared to other neighboring countries. With the passage of the rice tariffication bill, price of rice is expected to fall by P7 per kilo,” Angara said.
“This will greatly help augment the needs of our Filipino families with their everyday expenses,” he added.
Sen. Joseph Victor “JV” Ejercito also welcomed the decision of the President saying this “proves this government listens to the people.”
“The suspension, which was provided for in the TRAIN law, will help soften the impact of high inflation rate on Filipino families,” Ejercito said in a separate statement.
“And it should stay until the situation normalizes as promised by our economic managers,” he said.
Opposition Senator Paolo “Bam” Aquino IV also thanked President Duterte and the country’s economic managers for taking action the appeal of the Filipino people.
Aquino said he hopes that the government’s move is an indication of its willingness to eventually remove the all of the excise tax on fuel under its tax reform program, which could lead to lower prices of food and other goods.
“Suspending the additional taxes scheduled in January is important, but equally important is for the removal of these excise taxes currently being imposed),” Aquino said, also in a statement.
“We still need to respond to the problems of our fellowmen who are reeling over the high prices of goods and services,” he further stressed. [Hannah L. Torregoza]