PAMPANGA Congressman Juan Miguel "Mikey" Arrroyo is pushing for the suspension of fuel excise tax collection.
This following the rising fuel cost at an unprecedented level for the past weeks aggravated by the Russia-Ukraine war.
Arroyo, who chairs the House Energy Committee, joined calls for a special session aimed at passing a measure suspending the collection of excise tax on fuel.
The lawmaker made the appeal following a hearing on Monday, March 7, 2022, conducted by Fuel Crisis Ad Hoc Committee composed of the committees on economic affair headed by AAMBIS-OWA Representative Sharon Garin, Transportation chaired by Samar Representative Edgar Mary Sarmiento, Ways and Means headed by Albay Representative Joey Salceda.
On Tuesday, fuel prices rose by P5 per liter.
According to Arroyo, the loss for the suspension of fuel excise tax could actually be compensated by the windfall profit the government earned through the extra collections it made on value-added tax (VAT) and excise tax brought about by the spate of fuel price increases in recent weeks, similar to what happened during the latter years of his mother, former president Gloria Macapagal–Arroyo’s term.
“Before my mother’s term ended, there was also a spate of fuel price increases. To mitigate its impact, then president Arroyo utilized the windfall profit the government collected in excess of its projected revenue through the VAT and excise tax imposed on fuel,” Arroyo said.
Salceda agreed with the Pampanga lawmaker, proposing a "Katas ng Train" package, similar to the Arroyo administration's Katas ng VAT program.
The Albay lawmaker said an estimated P75.2 billion in revenue from VAT and oil excise, from which he is proposing P68.8 billion to be used to subsidize electricity, fertilizer, small fisherfolk and social pension for 2022.
Arroyo said the lawmakers, even if most of them are back in their respective districts, are on standby should President Rodrigo Duterte call for a special session to address the fuel crisis.