The continuous rise in fuel prices has caused a sort of panic for everyone, the crisis has caused even some lawmakers to call for a temporary suspension on the fuel excise tax until prices stabilize.
The Department of Finance (DOF) though, is opposed to the idea. DOF Undersecretary Paola Alvarez while speaking to the media yesterday said, suspension of the fuel excise tax is not in the country’s best interest, and may not help the lower-income bracketed Filipinos.
“Pag overall sinuspinde po natin lahat iyong excise tax including iyong VAT on excise tax ng lahat ng klase po ng fuel, mawawalan po tayo ng PHP 138.8 billion in one year or 0.6% of our GDP. Ang pinu-propose po natin, imbes po na suspendehin natin overall, magbigay po tayo ng targeted support doon sa mga mahihirap na nangangailangan,” said DOF Undersecretary Alvarez.
Undersecretary Alvarez further added that, if the two bills proposed by (Congress and Senate) to suspend fuel excise tax passes; the former may cost the Government Php 48.7 Billion, and the latter will lose the Government Php 69.3 Billion. Alvarez noted as well, that if fuel excise tax is suspended and fuel prices continue to rise, by 2032 the country could lose up to Php 1.5 Trillion.
Instead of a fuel excise tax suspension, the DOF is proposing a subsidy program. The program will be targeted at the poorer people who need it most. Under the program, PUV drivers will continue to receive aid through the Pantawid Pasada Program, while the government will continue to increase revenue in order to help more people affected by the fuel price increases.
