MANILA, Philippines - Several lawmakers in the House of Representatives on Tuesday pushed for a cap on the value-added tax (VAT) on fuel.
“We call for the immediate imposition of a cap on the value-added tax collected per liter of fuel. There must be a clear and reasonable limit to ensure that taxation does not further penalize consumers during periods of high fuel prices,” Tingog Rep. Jude Acidre said in a statement.
Sagip Rep. Paolo Henry Marcoleta and SSS–GSIS Pensyonado Rep. Rolando Ledesma Macasaet also called for the urgent passage of House Bill No. 8827, filed on April 7, which seeks to cap the VAT on petroleum products during a state of national energy emergency arising from extraordinary global oil supply disruptions.
Under the bill, the VAT imposed under Section 106 of the National Internal Revenue Code (NIRC) on the sale, barter, or exchange of covered petroleum products would be computed only on the gross selling price up to the applicable “Pre-Emergency Reference Price.” Any “Incremental Emergency Increase” would be excluded from the VAT base.
Section 5 of the measure provides that, during the same period, the VAT on the importation of covered petroleum products under Section 107 of the NIRC would be computed only on the total value used by the Bureau of Customs— including customs duties, excise taxes, and other charges—up to the applicable Pre-Emergency Reference Price or its equivalent. Any increase beyond this reference amount would likewise be excluded from VAT computation.
The bill also proposes amendments to Sections 106(A) and 107(A) of the NIRC, specifying that during a presidentially declared state of national energy emergency, the tax base for both domestic sale and importation of covered petroleum products shall not exceed the Pre-Emergency Reference Price. Any Incremental Emergency Increase above this threshold would not be subject to VAT.
