MANILA – The government must carefully weigh the fiscal impact of suspending fuel excise taxes as it could significantly reduce revenues needed to fund public programs, Sen. Sherwin Gatchalian said on Monday.
Gatchalian, who chairs the Senate Committee on Finance, said the suspension of excise taxes on petroleum products remains a “last resort,” noting the potential revenue loss of around PHP16 billion to PHP18 billion.
“Malaki ang mawawala, mga 16 to 18 billion mawawala. Naintindihan natin yan. At pag nawalan tayo ng koleksyon, wala rin tayong pagkukunan ng ibibigay (There will be a big loss, around PHP16 to PHP18 billion. We understand that. And if we lose collections, we will also have no source for the assistance we provide),” Gatchalian said.
The senator said while there is a case for suspending excise taxes, particularly on diesel used by the transport and logistics sectors, the government must balance consumer relief with sustaining public spending.
He expressed support for targeted fuel subsidies, describing them as a more direct way of assisting sectors most affected by high oil prices, such as public utility drivers and farmers.
“Ako pabor ako sa targeted approach dahil ang targeted, una-una, diretso 'yan sa mga nangangailangan talaga (I favor the targeted approach because it goes directly to those who truly need it),” Gatchalian said.
The senator noted that global oil prices have begun to ease, allowing the government to adopt a calibrated response while monitoring market trends.
He said alternative measures, such as fuel discount programs and service contracting, could provide quicker relief to transport operators without immediately resorting to full tax suspension.
Despite these options, Gatchalian maintained that suspending excise taxes on diesel remains under consideration, particularly given its widespread use in public transport and goods delivery. (PNA)
