The country’s economic managers made a “logical” move to withdraw an earlier recommendation to suspend the second tranche of fuel excise tax next year, a Palace official said Sunday.
Presidential spokesperson Salvador Panelo said the economic team initially thought world oil prices might breach $80 per barrel that would warrant the suspension of the higher excise tax on oil products in 2019 under the tax reform law.
The global oil costs, however, started to drop, prompting the economic mangers to recommend to President Duterte to push through with the higher fuel excise taxes instead.
Such recommendation will be discussed further when the President meets the Cabinet in Malacañang this Tuesday, according to Panelo.
“Actually ‘yung recommendation na yun they were just anticipating na tataas pa ng tataas. Eh nagkamali sila ng basa, biglang bumagsak,” Panelo said in a radio interview.
“And the reason why sinususpindi sila is umaakyat, baka lumagpas ng $80 per barrel, eh bumababa na eh. So logically, dapat talaga iatras mo ‘yung recommendation,” he added.
The President’s economic managers recently urged the President to press ahead with the additional P2 levy on oil products in January 2019 in light of the drop in oil costs. From an average of $79 per barrel in October, oil prices are reportedly expected to further decline to below $60 per barrel in 2019. (Genalyn D. Kabiling)