Gov’t launches fuel marking program

The Department of Finance (DOF) and the Bureau of Customs (BOC) formally launched the fuel marking program, which is expected to prevent oil smuggling in the country and boost government revenues.

Finance Undersecretary Antonette Tionko and Customs Commissioner Rey Leonardo Guerrero, on the sidelines of the BOC’s 117th anniversary celebration, led the ceremonial launching of the fuel marking program.

Fuel marking will be required on all petroleum products that are refined, manufactured, or imported into the Philippines that are subject to the payment of duties and taxes—such as but not limited to gasoline, denatured alcohol used for motive power, kerosene, and diesel fuel oil—after the taxes and duties have been paid.

The system will also monitor all locally-refined finished oil products to ensure correct payment of corresponding excise taxes and value-added tax.

It is one of the measures pro- vided under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Guerrero, in an interview after the event, said the BOC is set to issue the guidelines for the program’s rollout, with full implementation expected to be completed by March.

With the fuel marking in place, Tionko expressed confidence that oil smuggling incidence in the Philippines would decline, which would subsequently increase the government’s revenues.

“With the implementation of the fuel marking program this year, hopes are high that smuggling and misdeclaration of petroleum products will be eradicated and revenue collections will reach greater heights,” Tionko said.

According to Tionko, the BOC is working with the joint venture of SICPA-SA and SGS Philippines to implement the program.

“We’re confident that with their technical skills and expertise, as well as the overwhelming support from the oil industry for the fuel marking program, it will succeed,” the DOF official said.