DOF warns oil rms: Price hike is pro teering

The Department of Finance (DOF) yesterday warned oil companies not to raise pump prices of petroleum products unless their old inventories are used up.

In an advisory, the finance department said the fuel excise tax is not expected to take effect immediately on Jan. 1 as it takes a few days for the 2017 oil stock to be used up.

“This is because the excise is paid at the port of importation or refinery. Oil increase done by companies on Jan. 1 might be considered profiteering,” the DOF said.

President Duterte signed Republic Act 10964 or the Tax Reform for Acceleration and Inclusion (TRAIN) law last Dec. 19.

Aside from overhauling the tax rates for individual and corporate taxpayers, the new law will impose excise tax on oil of up to P6 over the next three years – P1 in 2018, P2 in 2019 and P3 in 2020.

On the other hand, essential petroleum products such as diesel, kerosene and LPG would be slapped with lower rates.

Likewise, excise tax for motor vehicles is placed at four percent for vehicles up to P600,000; 10 percent for over P600,000 to P1 million; 20 percent for over P1 million to P4 million, and 50 percent for hybrid vehicles.

No excise tax would be slapped on electric-powered cars.

The TRAIN also imposes a P6-per-liter tax on drinks containing caloric and non-caloric sweetener and a P12-per-liter tax on beverages with highfructose corn syrup.

Essential sugar-sweetened beverages such as milk and 3-in-1 coffee are exempted.