IF WORLD oil prices reach $80 per barrel, Malacañang said it would be willing to suspend the imposition of additional excise tax on petroleum products under the government's first tax reform package.
As of Tuesday, May 22, Brent crude oil price has increased to $79.47 while WTI crude is also up at $72.55 per barrel.
Presidential Spokesperson Harry Roque Jr. said suspension of the additional excise tax would help mitigate the impact of rising oil prices on the Filipino people.
"Excise taxes will be suspended, if they reach a certain amount -- if I'm not misktaken, $80 [per barrel]," Roque said in a press conference with Palace reporters.
"So we're ready to suspend the collection of excise tax on fuel products, if it reaches such certain amount," he added.
Additional excise tax is levied on fuel products under the Tax Reform for Acceleration and Inclusion (Train) Act.
Roque made the remark after oil firms raised prices of fuel products by more than P1 Tuesday.
Beginning Tuesday, prices of gasoline, diesel, and kerosene went up by P1.60 per liter, P1.15 per liter, and P1 per liter, respectively.
Under the Train Act signed by Duterte in December 2017, excise tax increases were imposed on liquefied petroleum gas (LPG) (P1), diesel (P2.50), gasoline (P7 per liter), and kerosene (P3) this year.
By 2019, excise tax on LPG will increase to P2, diesel to P4.50, gasoline to P9, and kerosene to P4. (SunStar Philippines)