Hot Breaking News for Filipinos

Imposing additional fuel excise tax could lead to another inflation hike, Akbayan solon warns

0 593

By JOHN CARLO M. CAHINHINAN

Akbayan party-list Rep. Tom Villarin has cautioned Malacañang against proceeding with the implementation of the second tranche of excise fuel tax increase starting next year.

Villarin warned that imposing the additional excise taxes on oil products would trigger an “inflationary push as speculative pricing will set into motion.”

“Our economic managers should not play ‘laban o bawi’ on addressing inflation as Filipinos who have just found their heads above water with the recent rollbacks on oil prices might again be drowned,” he said.

Budget Sec. Benjamin Diokno earlier announced that the government will proceed with the implementation of additional fuel excise tax after Finance Sec. Carlos “Sonny” Domiguez III recommended that it is now “unnecessary” to suspend the increase” in tax imperative due to the plunging world oil prices.

Villarin said inflation was caused by existing fuel excise taxes and not because of increases in pump prices of oil.

“Excise taxes on fuel was based on a $49 per barrel computation and inflation was projected at 4.2 percent. Global oil price is around $60 per barrel,” he said.

He explained that global oil prices remain volatile and could spike if production outputs are suddenly cut triggered by regional conflicts and overproduction.