₧41-B tax collectible from Shell to fund Covid response–palace

THE government is eyeing to spend the P41 billion excise tax collectibles owed by Pilipinas Shell Petroleum Corp. to fund its Covid-19 response program.

In an online news briefing on Thursday, Presidential Spokesman Harry Roque said the court-issued temporary restraining order (TRO) preventing the government to collect the amount was removed.

He said the Bureau of Customs has decided to collect the “biggest excise tax in the country’s history” from Pilipinas Shell.

“The P41 billion will be primarily be used for our Covid response,” Roque said.

He explained the amount of unpaid excise tax initially started with just P3 billion to P4 billion, but ballooned to P41 billion due to penalties and interests.

Earlier this month, the Supreme Court lifted the TRO it issued in 2014 followingtheappealofthegovernment.

The case stemmed from Pilipinas Shell’s refusal to pay the excise tax for 80,162 barrels of alkylate worth over P1.99 billion. It noted the substance is not subject to taxation since it only serves as an additive for its unleaded gasoline.