Friday, April 26, 2019

Biz supports oil excise tax next year

RIGHT LEVEL. Given the current market price of oil, business leaders in Cebu agree that government should push through with the second round of excise tax hike. (SunStar file photo)

THE Cebu Chamber of Commerce and Industry (CCCI) agreed with the decision of the government’s economic managers to push through with the excise tax on fuel next month.

“The price of oil has gone down not just to $79 but is now below $60 as of last Friday. In order to support the programs of the government, I believe excise taxes should be imposed at this level,” CCCI president Consul Antonio Chiu said.

Chiu urged the government to not only closely monitor crude oil prices in Dubai but also to immediately impose taxes if it rises back to the $80 mark.

“If prices rise up again to the level of $80, the government should reduce or stop collecting excise taxes on oil. It should be allowed to act fast and not wait for the average price of three months to cause it to act. The government is now in a difficult situation because after ordering the additional excise tax not to be collected, price of oil suddenly drops,” he said.

In an earlier interview, Mandaue Chamber of Commerce and Industry (MCCI) president Stanley Go said that the government should monitor the impact of the taxes especially on the cost of living amid the inflation.

“The financial arm of the government really has to closely monitor its impact and how it affects the country. If the (oil) prices are going down and they impose the excise tax it will basically offset each other,” he said.

The Development Budget Coordination Committee (DBCC) last week, recommended the lifting of the suspension of the fuel tax after its price dipped in the world market. The team noted that its suspension would have an “adverse” impact on revenues and expenditures for the next fiscal year.

“The said measure is estimated to result in a net revenue loss of P43.4 billion for a 12-month suspension, assuming Dubai crude oil prices average $65 per barrel in 2019,” the committee said.

The Train Law imposes an additional excise tax of P1 on liquefied petroleum gas (LPG), P2.50 on diesel, P7 on gasoline and P3 on kerosene for this year.

Next month, the tax on LPG will go up to P2, diesel to P4.50, gasoline to P9 and kerosene to P4. (JOB)


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