SENATE President Pro Tempore Panfilo Lacson is calling for amendments to the country’s tax laws to allow the government to immediately suspend excise taxes on fuel, warning that the current system could delay relief for consumers amid rising global oil prices.
Lacson said a key safeguard under the Tax Reform for Acceleration and Inclusion Law, or Train Law, that allowed the suspension of fuel excise tax increases when global oil prices reached a certain threshold had already expired in 2020.
Under Article 148 of the National Internal Revenue Code of the Philippines, the scheduled increase in excise tax on petroleum products could be suspended from 2018 to 2020 if the average price of Dubai crude oil reached or exceeded $80 per barrel for three months before the scheduled increase. The provision, however, is no longer in effect.
In a radio interview on Saturday, Lacson said the government must now establish a faster and more flexible mechanism to address volatile oil prices, particularly with the war in the Middle East affecting global energy markets.
“I am not just pushing for emergency powers but for a permanent amendment to the NIRC to shorten the ‘wait time’ to suspend excise taxes, especially with the situation now in the Middle East. We cannot wait three months before suspending the imposition of an excise tax,” he said in English and Filipino.
Lacson said that under the current framework, authorities must wait for a three-month monitoring period before suspending the excise tax on fuel, a delay he said could render the measure ineffective during sudden spikes in oil prices.
Instead, he proposed amending the law to grant the Department of Finance the authority to immediately suspend the excise tax when global oil prices breach critical levels.
“This process should not be automatic. The proposed amendment should empower the Department of Finance to act right away rather than wait for three months. Waiting that long could be too late,” Lacson said.
Meanwhile, the government has begun implementing measures to cushion travelers from rising transportation costs as global fuel prices spike amid the ongoing war in the Middle East, with regulators moving to ease pressure on airline passengers while probing a steep ferry fare increase in Zamboanga.
The Department of Transportation (DOTr) said it was coordinating with the Civil Aviation Authority of the Philippines (CAAP) and the Civil Aeronautics Board (CAB) to mitigate the impact of soaring jet fuel prices on airline fares.
Government monitoring showed that jet fuel prices nearly doubled in recent weeks, rising from $90.87 per barrel on Feb. 19 to $188.20 per barrel on March 9.
To help airlines manage higher operating costs, Transportation Secretary Giovanni Lopez directed CAAP to reduce Passenger Service Charges (PSC) and airport navigation fees at airports operated by the aviation authority.
The move is intended to lower operational expenses for carriers and help temper potential increases in ticket prices.
