Sen. Francis Pangilinan has filed a bill authorizing the President to temporarily suspend excise taxes on petroleum products during periods of global crisis.
Senate Bill No. 1940, filed on Monday, aims to give the President the power to suspend or reduce fuel excise taxes during national or global economic emergencies.
The proposed measure will amend Section 148 of the National Internal Revenue Code of 1997, which currently states that the recommendation for an excise tax suspension will depend on the Development Budget Coordination Committee (DBCC) in consultation with the Department of Finance.
In a news release Tuesday, Pangilinan emphasized the urgent need to suspend excise taxes on petroleum products during “extraordinary events,” pointing out that higher global oil prices are fully passed on to consumers.
“Such measure would support timely relief, help ease inflationary pressures, and reduce cost burdens on Filipino consumers, particularly farmers, fisherfolk, transport workers, and small businesses,” he said.
“Granting the President continuing authority to suspend or reduce fuel excise taxes during extraordinary circumstances would enable a timely policy response to exceptional oil price volatility and mitigate its impact on Filipino consumers.”
The proposed amendment will authorize the President to temporarily reduce or suspend fuel excise taxes upon the recommendation of the DBCC and in consultation with the Department of Energy.
Sen. Francis Escudero also filed a bill that would urgently authorize the President to suspend or reduce taxes on petroleum products during times of global oil supply disruptions due to external shocks.
Senate Bill No. 1938, also filed on Monday, empowers a sitting president to reduce excise and value-added taxes on petroleum products when global oil prices breach specific thresholds due to various factors.
Such powers shall take effect once the average Dubai crude oil price exceeds USD80 per barrel for a month.
The bill provides for an innovative “flexibility clause,” which allows the President to implement oil tax cuts even before the barrel price threshold is breached. This shall take effect during times of extraordinary supply disruptions, geopolitical crises, or force majeure events, once certified by the Energy secretary. (PNA)