Govt los­ing P145B in fuel taxes an­nu­ally – DoF

Manila Times - - BUSINESS TIMES & WORLD REPORT - MAYVELIN U. CARABALLO

THE govern­ment is los­ing about P145 bil­lion, or 1 per­cent of the coun­try’s gross do­mes­tic prod­uct (GDP), in po­ten­tial an­nual rev De­part­ment of Fi­nance (DoF) said.

In a state­ment on Wed­nes­day, Fi­nance Un­der­sec­re­tary Karl Ken­drick con­gres­sional pro­pos­als to lower Di­rect cash trans­fers will be given to “vul­ner­a­ble sec­tors” to off­set the

of Fi­nance (DoF) would vig­or­ously at the Bu­reaus of In­ter­nal Rev­enue the in­fras­truc­ture build-up of the Duterte ad­min­is­tra­tion.

are not enough to raise ad­e­quate funds to bankroll the Duterte ad­min­is­tra­tion’s agenda of high and in­clu­sive growth, given the sys­tem that re­quire ur­gent cor­rec

He noted, for in­stance, that changed for the last 20 years while last 12 years.

Th­ese rates have led to a mas­sive fore­gone rev­enue loss of about P145 bil­lion in 2016 prices, which rep­re­sents about 1 per­cent of GDP,

“Our pro­posal to ad­just the fuel merely up­dates the rates to cur­rent lev­els as this rep­re­sents the Even with the ad­just­ments, the re­tail prices of gaso­line and diesel will still be much lower than the rates dur­ing the oil price shocks of

For vul­ner­a­ble sec­tors and low-in­come groups, the DoF is propos­ing a tar­geted cash trans­fer pro­gram for the poor­est 50 per­cent of house­holds, which in­cludes the rein­tro­duc­tion of the “Pantawid Pasada” pro­gram that will pro­vide fuel price dis­counts to pub­lic util­ity ve­hi­cles, and a jeep­ney mod­ern­iza­tion pro­gram of th­ese ve­hi­cles.

“Th­ese pro­posed ini­tia­tives will cush­ion the im­pact of higher fuel - mut­ing and food costs for the

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