Duterte to con­sider ‘na­tional in­ter­est’ in oil tax hike de­ci­sion

Sun Star Bacolod - - Topstories -

Ro­drigo Duterte’s de­ci­sion on the pro­posed im­ple­men­ta­tion of the sec­ond round of fuel ex­cise tax in­creases in Jan­uary 2019 will be based on “na­tional in­ter­est and ben­e­fit to the peo­ple,” Mala­cañang said Fri­day, Novem­ber 30.

Duterte will care­fully study the rec­om­men­da­tion of his eco­nomic team to pro­ceed with the sec- ond tranche of ex­cise tax hikes in petroleum prod­ucts, Pres­i­den­tial Spokesper­son Sal­vador Panelo said in a state­ment.

“We ad­vise the pub­lic to wait for the Pres­i­dent’s de­ci­sion in this re­gard. The Pres­i­dent’s de­ci­sion will, as al­ways, be based on na­tional in­ter­est and ben­e­fit to the peo­ple,” he said.

In Oc­to­ber, Duterte’s eco­nomic man­agers sought the sus­pen­sion of the sec­ond round of in­creases in the fuel ex­cise taxes in an ef­fort to tame the surg­ing prices of goods in the coun­try.

The ear­lier rec­om­men­da­tion to sus­pend the sched­uled ex­cise tax in­creases in 2019 was ap­proved by Duterte on Novem­ber 14.

The Pres­i­dent’s eco­nomic team, how­ever, took back its pro­posal on Thurs­day, Novem­ber 29, amid the falling global oil prices.

The Tax Re­form for Ac­cel­er­a­tion and In­clu­sion (Train) Act im­poses ex­cise tax in­creases worth P1 on liq­ue­fied petroleum gas (LPG), P2.50 on diesel, P7 on gaso­line, and P3 on kerosene this year.

The Train Law fur­ther raises the ex­cise taxes on LPG, diesel, gaso­line, and kerosene to P2, P4.50, P9, and P4, re­spec­tively, in 2019.

Un­der the tax re­form law, fur­ther ex­cise tax in­creases on fuel prod­ucts can be sus­pended when Dubai crude oil prices ex­ceed the $80 per bar­rel thresh­old three months be­fore the sched­uled in­crease.

Panelo said Duterte would took into con­sid­er­a­tion the pos­si­ble im­pact of his eco­nomic team’s lat­est pro­posal, which is still sub­ject for dis­cus­sion in a Cab­i­net meet­ing on De­cem­ber 4.

“This rec­om­men­da­tion is still sub­ject for dis­cus­sion in next Tues­day’s Cab­i­net meet­ing. We can­not limit this is­sue from a purely eco­nomic per­spec­tive. We note the sen­ti­ments of the Filipino con­sumers and the Pres­i­dent will cer­tainly weigh in the so­cial costs in­volved,” he said.

“Due re­gard, how­ever, must also be given to the dic­tates stip­u­lated un­der the law, which only the Congress can mod­ify,” Panelo added./sun­star Philip­pines

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.