Senate asks DOF to study suspension of excise taxes

The Senate committee on public service asked Friday the Department of Finance and other government agencies to study the suspension of excise taxes on fuel amid the inflation and fuel price hike.

Senator Grace Poe said this was the initial recommendation of the committee, which she chairs, following the conduct of a public hearing in Iloilo City on the effects of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law particularly on utilities and transportation.

“Hihilingin natin sa Department of Finance at sa ibang ahensya ng gobyerno na pag-aralang mabuti ang suspension ng excise taxes sa fuel dahil sa walang humpay na pagtaas ng presyo ng produktong petrolyo,” Poe said in her closing statement.

She added that the government should also look into the suspension of the implementation of TRAIN amid its effect on the price of almost all products.

“Bilang tulong sa ating mga kababayan, lalo na sa mga mahihirap, dapat na pag-aralan ng ahensya ang pagpapaliban sa full implementation ng TRAIN Law, particularly sa fuel excise taxes, dahil lahat ng produkto ay apektado nito,” she said.

During the hearing, senators were told that pump prices on the Panay island have already increased by 30 percent or at least P10 for diesel and gasoline since December last year. The region already registered price upticks in rice (P5 per kilo), pork (P15 per kilo), and fish (P20 per kilo).

Farmers also have to fork in an additional P2,600 a month and a worker has to contend with additional P3,640 after the passage of the TRAIN Law, the Senate panel was told.

Consumer groups in Panay have blamed the effects of TRAIN Law being aggravated by increasing fuel costs as the culprit behind higher commodity prices.

“Ngayon din, ang mga drayber ay nagmamaneho ng mas mahabang oras para lamang matugunan ang kakulangan na iyon,” Poe said.

The senator said she will ask her colleagues to support the proposal for the fuel excise tax suspension.