Former Defense Secretary and senatorial bet Gilbert "Gibo" Teodoro. (File photo)
MANILA – Former Defense Secretary and senatorial bet Gilbert “Gibo” Teodoro has favored the lowering of excise tax on petroleum products rather than suspending it as an immediate help to consumers amid the rising oil prices.
In a statement Wednesday, Teodoro said he recognizes that the government “has to do a difficult balancing act" as increments from tax collection, especially those in effect due to the Tax Reform for Acceleration and Inclusion (TRAIN) law, are funding social programs, such as those for economic recovery, fuel subsidy, and debt payments, among others.
However, Teodoro said the government must also take steps to ease the impact of the non-stop oil price hike, which is now in its eighth week.
“Some adjustments to excise tax would immediately help in easing the impact of high oil prices, which is not only affecting motorists but could also trigger higher inflation,” the UniTeam senatorial aspirant said.
He said under the Internal Revenue Code, the Chief Executive has the power to adjust some taxes based on economic conditions.
Oil Industry Management Bureau director Rino Abad said the Department of Energy (DOE) already proposed amendments to TRAIN law on temporary suspension of excise tax.
Under the TRAIN law, the government collects an excise tax of PHP10 per liter for gasoline, PHP6 per liter for diesel, and PHP5 per liter for kerosene.
Meanwhile, the Department of Finance has been opposing the suspension of oil excise tax as this would result in government revenue losses of over PHP130 billion.
Teodoro said if the government cannot afford to suspend the excise tax, it should consider looking into reducing it to address rising pump prices. (PNA)
