Pressure to ‘suspend’ oil tax gains ground

The weakening local currency and inflationary pressure on commodities may be invoked by the legislative branch as ground for suspension of excise taxes on petroleum products.

This will be on top of the $80 per barrel oil price trigger stipulated in the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

At this point, legislators are reportedly weighing the cost impact on consumers of the falling value of the peso versus the US dollar – for it to become an added argument or justification to temporarily halt the pass-on of the TRAIN-anchored excise taxes for products at the pumps.

Senate Committee on Energy Chairman Sherwin T. Gatchalian noted though that frail foreign currency exchange (forex) rate was not a provision under the TRAIN Law, but it can still be considered if it will immensely erode the purchasing power of Filipino consumers.

“There are other factors…like the exchange rate. If need be and we can sense it’s already a huge burden to consumers, then it may be a compelling reason. I