Palace says fuel excise tax suspension up to next admin

The decision to suspend excise taxes on petroleum products, said to be a crucial factor in offsetting fuel price increases, rests with the incoming administration which assumes its duties on July 1. 

The current administration is adopting a hands-off approach on the issue of suspending fuel excise taxes

This was according to Communications Secretary and acting presidential spokesperson Martin Andanar during a Malacañang press briefing Tuesday. “Hahayaan natin sa susunod na administrasyon ang desisyon tungkol sa panawagang ito,” he said.

(We will leave it up to the next administration to decide on these calls)

He added that President Rodrigo Duterte has not changed his position rebuffing proposals to suspend the excise tax imposed on fuel.

In March, the Chief Executive thumbed down calls to temporarily remove the tariffs. Instead, he approved a recommendation by the Department of Finance (DOF) to disburse financial aid among the country’s vulnerable sectors, with Php 33 billion earmarked for unconditional cash transfers to 12 million indigent families for one year, amounting to Php 200 per month or a total of Php 2,400 for every qualified household.   

President Rodrigo Duterte has stood firm on retaining the tariffs to fund government projects

At least one lawmaker, Rep. Rufus Rodriguez of Cagayan de Oro, has vowed to re-file a proposal to suspend excise taxes on fuel when the new Congress begins on July 25. 

However, Andanar cites outgoing Finance Secretary Carlos Dominguez III pronouncement that the excise taxes are necessary to fund current expenditures such infrastructure projects under the ‘Build, Build, Build’ program. Dominguez warned that the alternative would be to borrow more money, leading to revenue losses of Php 105.9 billion. Excise taxes on pickups and motorcycles are also being proposed. 

The next administration, through incoming Finance chief Benjamin Diokno, is also against suspending excise taxes 

This view was echoed by Bangko Sentral ng Pilipinas Governor and incoming Finance chief Benjamin Diokno, representing the position taken by the administration of President-elect Ferdinand Marcos, Jr. 

According to Diokno, suspending excise taxes on fuel would be untimely. Marcos himself claims that there are other ways to address fuel price hikes, but he would be open to reconsidering if there are studies showing the benefits of removing excise taxes on fuel temporarily.      
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