By GENALYN KABILING
The government is prepared to suspend the fuel excise taxes under the new tax reform law to cushion the blow of soaring prices of oil products on the public.
Presidential Spokesman Harry Roque said the Tax Reform for Acceleration and Inclusion (TRAIN) Act carries a suspension provision if the global price of oil reaches $80 per barrel or higher.
“Excise taxes will be suspended if they reach a certain amount if I’m not mistaken $80. So we’re ready kung talagang umabot ng ganyan kataas na suspende ang koleksyon ng excise taxes pagdating sa produkto ng langis,” Roque said during a Palace press briefing when asked about the government’s contingencies to protect the public from rising oil prices.
Apart from the suspension of excise taxes under TRAIN law, Roque said the cash transfer program provided by the law for the poorest families should also be implemented.
Roque said he would check with the Department of Finance (DoF) and Department of Budget and Management (DBM) on the release of these benefits, including the P200 monthly subsidy, to help poor families cope with the rising prices.
Roque issued the remarks after oil companies carried out another increase in domestic pump prices due to rising cost in the world market. Gasoline prices rose by R1.6 per liter while diesel increased by P1.15.
Republic Act No. 10963, also known as TRAIN law signed by the President last December, has reduced the personal income taxes, but imposed higher excise taxes on fuel, cars, and sweetened beverages.
Under the law, fuel excise taxes would be suspended if the average Dubai crude oil price for three months prior to the increase exceeds $80 per barrel.
Since the implementation of the TRAIN law this year, the excise on gasoline and diesel have been raised to R7 per liter and P2.50 per liter, respectively.
