The House of Representatives has begun today, November 22, the plenary discussion of the proposal reducing excise taxes on selected fuel products.
House Committee on Ways and Means chairperson Joey Salceda said House Bill 10488 could be approved on second reading this week.
The measure was sponsored by AAMBIS-OWA Rep. Sharon Garin and Bayan Muna Rep. Ferdinand Gaite.
Salceda’s committee approved the measure last week.
Salceda said the excise tax on gasoline with 91 research octane number will be reduced to P4.35 from P10 per liter while gasoline with higher octane number will be P7 from P10 per liter.
The P6 per liter excise tax on diesel, P5 per liter of kerosene, and P3 per kilogram of liquefied petroleum gas (LPG) will be reduced to zero.
Salceda said the Committee included a provision mandating the Department of Energy (DOE) and the Department of Finance (DOF) to monitor price changes during the implementation of the proposal and to ask the Department of Justice (DOJ) to act on suspicious price adjustments.
“This will help ensure that the excise tax reduction is reflected in the retail price, and Filipino consumers and families actually benefit from the measure,” Salceda said.
According to DOF, the measure will result in foregone revenues of P37.5 billion.
Salceda said part of the losses may be recovered by increases in VAT collection due to higher prices.
The DOF said the measure could increase disposable incomes by 0.22 to 0.48%, increase consumption by around 0.2%, and reduce inflation by around 0.14%.
Salceda also urged the DOF to improve its anti-smuggling efforts.
“During periods of high prices, the incentive to smuggle also increases. That is why I would like the Bureau of Customs and the DOF to update me on its fuel enforcement measures. Earlier this year, we agreed that we will create a Task Force Paihi to combat fuel smuggling in our ports. I would like updates on that,” he added.