Fuel excise tax to stay as Duterte approves DOF’s recommendation

After discussions regarding whether the fuel excise tax should be temporarily suspended or not, President Rodrigo Duterte has made a decision. He approved the Department of Finance’s (DOF) recommendation to keep the excise taxes on fuel products.

President Rodrigo Duterte

According to DOF Secretary Carlos Dominguez III, government revenues stand to be reduced by Php 105.9 billion this year if the fuel excise tax is suspended. In a prerecorded Talk to the People televised briefing last Wednesday, Duterte said that he based his decision on the recommendations of the government agency.

“The Cabinet members aren’t there for nothing. Sila ‘yung magtrabaho at ako (they will do the job while I), I will just decide after reading the reports, then I decide. That’s what I’m here for talk to the nation,” said President Rodrigo Duterte.

The fuel excise tax stays

Dominguez explained that suspending excise taxes will force the government to borrow more money to minimize the losses. “In 2023, that goes up to Php 114.4 billion; in 2024, Php 123.6 billion; and so on,” Dominguez told Duterte. He added that the proposal will only benefit the rich, especially those who own cars.

To address the issue, Dominguez proposed the monthly fuel subsidy distribution of Php 200 each to around 12 million poor Filipinos for one year, claiming that this is more sustainable and something the government can afford at this time. Duterte approved the recommendation, saying, “So sige, ‘yun ang policy ng executive department (fine, that would be the executive department’s policy).”

Motorists are burdened by the soaring fuel prices

The Department of Budget and Management will release the guidelines on the distribution of additional relief to poor Filipinos. Those who work in the most vulnerable sectors and are most affected by the current situation, including minimum wage earners, will be prioritized.

This announcement was made amid the Department of Energy’s (DOE) projection that the first fuel price rollback for 2022 will happen next week. According to the DOE, gasoline products could go down by Php 5 per liter, while diesel prices could drop by Php 12 or more.

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