Lawmakers buck higher taxes on fuel

Calling it ill timed and burdensome, several senators and a member of the House expressed opposition yesterday to the plan of the administration to impose higher taxes on fuel to generate more revenues for the government.

Senate Minority Leader Ralph Recto said the proposal was ill timed because world oil prices were on the way up and that there was no fiscal crisis to justify it.

“Just improve collection efficiency and stop smuggling,” Recto told the administration.

“In addition, government collects more taxes when the economy grows faster. Then grow the economy. Spend the budget first,” Recto added.

The President’s economic managers have been pushing for an increase in the excise tax on oil and fuel products to finance the ambitious infrastructure program of the administration.

Among the products covered by the plan are diesel, used by most passenger buses and jeepneys, which will be imposed a tax of P6 per liter, as well as cooking gas and bunker fuel for generating electricity. The tax on gasoline will also be raised from P4.35 to P10 per liter.

Senate Majority Leader Vicente Sotto III urged Malacañang to look for other sources of revenue before considering the imposition of such a huge burden on the public.

“Further study in the Senate is necessary. We have our economic experts and members with a lot of common sense, therefore the issues can be fully discussed,” Sotto said.

Sen. Francis Escudero said that he would like to study the proposal but expressed belief that the reported hike in fuel taxes was too much.

To justify the increase, Escudero said it was necessary for Malacañang to prove it already exhausted all efforts to collect the existing taxes.

He said the Palace should also convince Congress and the public that the government would be able to spend the money collected, “especially given our experience last year (on) low absorptive capacity” of departments and agencies.

Even though the Palace has agreed to the proposals to lower the income tax rates for most taxpayers, Escudero said that the net effect of the hike in fuel taxes would far outweigh the impact of the former.

Sen. Leila de Lima said the proposal was unacceptable, especially since the poor and low-income Filipinos would be most affected by this.

She said that the increase in fuel taxes would definitely lead to an increase in transport fares and prices of various basic goods.

“Are they just angry at the poor? Because it is the poor who are always the victims here. In the war on drugs, it is the poor who are the victims. Now even with the collection of taxes, the poor would still have to feel the pain,” De Lima said.

“This should be studied extensively because the consequences will be carried by the poorest segment of our society. They should likewise disclose where this additional revenue (will) be used,” she added.

Like Recto, De Lima said the administration should focus on improving collection efficiency of the Bureau of Internal Revenue and Bureau of Customs instead of raising taxes.

On the other hand, Sen. Panfilo Lacson is keeping an open mind on the issue.

“As long as there is a mechanism to cushion the impact on public transport and other freight-related industries, I am inclined to support the tax package program of the DOF (Department of Finance) and the administration,” Lacson said.

“Having said that, I need to see how they will put that mechanism in place and find out if it is effective or at least implementable,” he added.

‘Tax sin products instead’

Rep. Jericho Nograles of party-list group Puwersa ng Bayaning Atleta also opposed the proposal, saying it would be better to impose higher taxes on the so-called “sin” products like cigarettes and liquor.

He said diesel, cooking gas, kerosene and gasoline were basic necessities, and levying or increasing the tax on them would have a direct impact on their lives.

“It would run counter to President Duterte’s social reform agenda. Taxing diesel would greatly diminish the purchasing power of Filipinos because this would mean higher transport cost and a dramatic increase in prices of goods, including basic commodities,” he said.