MANILA

Bill seeks to scrap fuel excise tax under Train law

SURIGAO del Norte Representative Robert Ace Barbers on Thursday, October 4, filed a bill that seeks to repeal the hefty tax on fuel imposed by the Tax Reform for Acceleration and Inclusion (Train) law.

House Bill No. 8369 seeks to repeal Section 43 of the Train law which provides for the tax imposition on fuel totalling to P6 per liter from 2018 to 2020.

The bill filed by Barbers states that excise taxes on fuel under the Train Law will automatically be reverted to the old National Internal Revenue Code (NIRC) rates of excise tax on fuel.

In the explanatory note of the bill, Barbers said that since the enactment of Train law, prices of fuel have increased significantly.

He said the price of fuel will be much higher in the next tranche of the implementation of Train in 2019 and 2020.

“It is not disputed that increase in excise taxes on fuel leads to an increase in the price of fuel. The increase on fuel prices in turn affects the prices of basic goods and services as producers or manufacturers may pass production cost to consumers,” Barbers said.

“As such, this measure seeks to protect the underprivileged Filipino families from the negative impact of soaring prices of fuel and its effect on the prices of goods and services by stopping the implementation of excise taxes on fuel under Train,” he added.

Barbers noted that while Train law is laudable, it should be adaptable to change especially now that the prices of commodities have increased.

Last September, Marikina Rep. Miro Quimbo filed a measure to return to zero the excise tax on kerosene and diesel.

Quimbo, in House Bill no. 8171, said the excise tax imposed on kerosene and diesel resulted to higher prices not just of fuel but also of goods and serves which rely on fuel for production, operation and distribution. (SunStar Philippines)


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