Legislation suspending VAT, excise taxes for fuel products filed in Senate

Should the new admin go for this?
by Drei Laurel | Jul 4, 2022
Fuel pumps at a fuel station
PHOTO: Shutterstock

The government has already made known that it isn’t too keen on suspending taxes to help motorists cope with rising fuel prices. One senator, though, is still following through on filing legislation to do exactly that.

‘An Act Suspending the Imposition of Value-Added Tax and Excise Taxes on Fuel’ tops Senator Koko Pimentel III’s list of priority bills and resolutions for the 19th Congress.

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This news follows calls made by the senator several weeks ago urging the new administration to suspend excise taxes on gasoline and diesel amidst the ongoing fuel crisis. President Ferdinand Marcos Jr. responded to Pimentel’s request, saying he would prefer if taxes weren’t reduced.

vehicle refueling with diesel

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“I prefer to handle the problem on the other side of the equation and provide assistance to those who are in need. If you reduce the excise taxes, that does not necessarily help those who are most in need. Yung talagang tinatamaan. Kasi blanket eh,” Marcos Jr. said.

“So ang aking iniisip, kung sino ang mga kaagad tinamaan—example, yung lumabas kaagad, mga transport, yung mga nagpapasada, yung tinamaan kaagadi-focus natin savkanila. Yung mga nangangailangan talaga.”

Marcos Jr.’s response isn’t too far off from what previous officials of the Department of Finance suggested. The agency advised the new government from suspending or reducing taxes to help deal with mounting debt.

More details regarding Pimentel’s new bill should surface soon. Are you in favor of this?

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