Senate sets hearing on inflation, oil excise tax

The Senate Economic Affairs Committee is holding a public hearing today on proposals to address rising inflation and the suspension of the Collection of excise tax on oil products mandated by the controversial Tax Reform for Acceleration and Inclusion (TRAIN) law.

Sen. Sherwin T. Gatrchalian, committee chairman, said his public inquiry tomorrow would focus on the statement of President Duterte that he might suspend the collection of excise tax on petroleum products.

He said he would try to determine the effects of the suspension of the excise tax collection on the increase of the prices of goods, on the proposed 2019 R3.757-trillion national budget and other economic programs of the Duterte administration.

Earlier, Socio-Economic Planning Secretary Ernesto Pernia bared that he plans to sit down with the other members of President Duterte’s economic and financial officials on the suspension of the excise tax collection.

In a related development, Ilocos Norte Gov. Imee Marcos said suspending the value added tax (VAT) on basic commodities – including food, fuel and electricity – for one year will benefit a wider number of Filipinos at a faster pace instead of waiting for the suspension of the second tranche of excise taxes next year.

Marcos said the suspension of the VAT would provide immediate relief to Filipino consumers.