SENATOR Imee Marcos is pushing to grant President Ferdinand R. Marcos Jr. the authority to temporarily suspend the value-added tax (VAT) on petroleum products to cushion motorists and key sectors from the impact of rising oil prices.
Marcos announced on Thursday, March 12, 2026 that she filed Senate Bill No. 120, a refiled version of her earlier proposal, which seeks to amend the National Internal Revenue Code to allow the President to lower or suspend the 12 percent VAT on petroleum products for up to one year during a declared national emergency or state of calamity.
“2022 pa, nakita na natin at inasahan ang krisis na ito. Kaya inihain ko ang SBN 187 (SBN 120 as refiled in 2025) na bigyan ng kapangyarihan ang presidente na ipatigil pansamantala ang pataw na VAT (As early as 2022, we already saw and anticipated this crisis. That is why I filed SBN 187 to give the President the power to temporarily stop the imposition of VAT),” Marcos said in a statement.
Under the bill, the President may issue an executive order, after consultation with the Finance Secretary, to temporarily reduce or suspend VAT on the sale and importation of petroleum products to ease the burden on consumers during periods of crisis.
Marcos said suspending VAT would immediately benefit consumers since the tax is directly added to pump prices.
“Ngayong linggo, inaasahang aabot ng halos P85 ang diesel, habang P74 ang gasolina. Kung ipapatupad ang suspensyon ng VAT, makakabawas tayo ng P8.43 kada litro ng diesel at P6.79 kada litro ng gasolina (This week, diesel is expected to reach nearly P85 per liter, while gasoline may hit P74. If the VAT suspension is implemented, we could reduce P8.43 per liter for diesel and P6.79 per liter for gasoline),” she said.
She clarified that the proposed tax relief would focus on sectors heavily affected by rising fuel prices, including drivers and operators, farmers, fisherfolk, and other small fuel consumers.
“Tututok lamang tayo sa mga maliliit na sektor na higit na apektado ng pagtaas ng presyo ng langis – tulad ng mga tsuper at operator, magsasaka, mangingisda, at iba pang maliliit na kumukonsumo ng petrolyo (We will focus only on small sectors most affected by rising oil prices – such as drivers and operators, farmers, fisherfolk and other small fuel consumers),” Marcos said.
She also urged the Department of Finance to consider reducing VAT for small sectors so the relief would not mainly benefit large corporations.
Proposed suspension
Meanwhile, Sen. Sherwin Gatchalian said any proposed suspension of the excise tax on petroleum products should not come at the expense of government spending on key programs for social services, education, and health.
“The reality is that there will be a tradeoff. But we should not sacrifice government support for social services, education, and health,” he said in a separate statement.
The senator noted that the Department of Finance estimates the proposed suspension could result in about P136 billion in foregone revenues if implemented from May to December this year.
Gatchalian also asked the Department of Budget and Management to identify government projects or programs that could be scaled back to offset the potential revenue loss from the tax suspension.
“The DBM should identify specific areas where the government can scrimp. These items could include less travel for government personnel, lower fuel and electricity consumption as some government agencies begin implementing a four-day work week,” he added. / PNA