MANILA -- Suspension of the second tranche of the oil excise tax hike in 2019 will push through as recommended by the economic managers of President Rodrigo Duterte.
This after Executive Secretary Salvador Medialdea approved on Nov. 9 the recommendation to suspend the next scheduled excise tax on fuel “subject to Section 43 of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law”.
Under the TRAIN law, the increase of excise tax for oil for 2019 may be suspended if global oil prices average at USD80 per barrel in the last three months of this year.
The suspended increase would have raised the excise tax of diesel and gasoline by PHP2 per liter each.
According to the Department of Finance (DOF), the suspension of oil excise tax could result to PHP41 billion revenues loss for the government.
Finance Secretary Carlos Dominguez III said a review will be conducted six months after the suspension takes effect.
For 2018, the TRAIN law increased excise tax on fuel products by PHP2.50 per liter, PHP2 per liter in 2019 and PHP1.50 per liter for 2020. (PNA)
