Senator voices appeal to remove excise tax, other fees on fuel     

Successive increases in local fuel prices have fanned calls to suspend the current excise taxes imposed on petroleum products. Senator Aquilino Pimentel III adds his voice to the chorus, appealing to the incoming administration to remove tariffs from fuel transactions. 

Sen. Aquilino Pimentel III wants to file a bill removing excise taxes on fuel

“Wala tayong indigenous source sa item na ‘yan. So, huwag na natin pang dagdagan ang presyo niya (We have no indigenous sources for that item. So, let’s not add any more to its price),” he said. 

The government’s current position is that removing excise taxes will affect revenues earmarked for various expenditures, such as salaries for schoolteachers and infrastructure projects under the “Build, Build, Build” program. According to Pimentel, belt-tightening measures should be considered instead. 

“Alisin na yung mga tinatawag na vanity projects, ‘yung mga seminar na maraming ginagastos, ‘yung mga masasabi natin hindi na essential,” he stressed. “I-review lahat sa budget.”  

(Remove the so-called vanity projects, seminars that are expensive, things that we can consider as non-essential. Review everything in the budget)

The government says suspending excise taxes on fuel will affect planned infrastructre projects 

The lawmaker said that while lifting excise taxes and other fees on fuel is the prerogative of the Executive branch, he intends to file a bill to pursue the matter formally. This echoes the move of Cagayan de Oro Representative Rufus Rodriguez, who will reportedly file a similar measure at the Lower House when Congress resumes on July 25. 

Meanwhile, reelected senator Sherwin Gatchalian has taken the opposite view. He has expressed support for the incoming administration’s position that fuel subsidies for affected sectors such as transport are preferable to removing excise taxes. 

The incoming administration believes that fuel subsidies to affected sectors is the way to go 

“One tranche will cost you about Php 4 billion to Php 5 billion, as (compared) to removing the excise tax that will cost us roughly around Php 200 billion,” he explained, adding that an increase in subsidies would be more efficient and economical, as long as these are distributed in a timely manner.        

However, Gatchalian said he is open to discussing plans to suspend the excise tax along with the value-added tax for fuel if the oil crisis does not end soon. 

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