MANILA, Philippines — The House of Representatives' Committee on Ways and Means on Tuesday approved a substitute bill that aimed to authorize the country's president to suspend or cut fuel excise taxes during national or global economic emergencies.
The bill stated that the president "may, upon the recommendation of the Development Budget Coordination Committee, in coordination with the" secretary of the Department of Energy (DoE), "suspend the imposition of, or reduce the excise taxes on fuel, "subject to conditions.
The conditions were: when the average Dubai crude oil price based on the Mean of Platts Singapore has reached or exceeded $80 per barrel for a month "immediately preceding the issuance of the suspension or reduction order;" or the president has declared a state of national emergency or calamity, "and such condition has resulted in extraordinary increases in domestic pump prices of petroleum products as certified by the" DoE secretary.
Under the bill, the suspension may cover specific petroleum products. It allows full suspension or partial reduction of the excise tax rates.
Also under the bill, the suspension or reduction can only last for up to six months unless Congress extends it or ends it earlier through a joint resolution. The total suspension period, the bill stated, shall not exceed a year.
It also stated that "any suspension or reduction shall be lifted when the conditions that warrant the suspension or reduction no longer exist". Also under the bill, the president has the power to temporarily suspend or cut fuel excise taxes only until Dec. 31, 2028.
Under the bill, the president must submit, through the Finance secretary, to Congress a report within 15 days from the suspension order's issuance and every month afterward on the "factual basis for the suspension or reduction of excise taxes;" the estimated foregone revenues; and the "expected impact on inflation, fuel prices, and other economic activity."
