By Ruth Abbey Gita-Carlos
MANILA – The country’s economic managers will determine the possible rates of the proposed oil excise tax cut should President Ferdinand R. Marcos Jr. exercise his emergency powers amid tensions in the Middle East, Malacañang said Wednesday.
Speaking to reporters, Palace Press Officer Claire Castro said Marcos would consult his economic team, if he decides to reduce excise tax on petroleum products once Dubai crude exceeds USD80 per barrel.
“Wala pong napag-usapan kahapon. At makikinig naman din po siya sa mga economic team kung ano ang pinakamagandang reduction rate (Nothing was discussed yesterday. And he will listen to the economic team on what the best reduction rate would be),” Castro said, when asked about the ballpark figure of the excise tax cut.
Castro said Marcos cannot suspend the imposition of mandatory excise taxes on all oil and fuel products unless Congress passes a new law.
Under Republic Act (RA) 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, excise taxes on petroleum products were implemented in three tranches from Jan. 1, 2018 to Jan. 1, 2020.
RA 10964 also provides for the automatic suspension of the excise tax increase if the average Dubai crude oil price reaches or exceeds USD80 per barrel.
Castro explained that the provision covered only the 2018 to 2020 period.
She said Marcos may certify as urgent a proposed measure seeking a new authority to reduce excise taxes, noting that it is “timely.”
“Ang sabi po sa atin kapag nag-lift or nag-suspend ang excise tax ay dapat 2018 to 2020 (We were told that the lifting or suspension of the excise tax applied only from 2018 to 2020,” she said.
“So, sa ngayon po ay hindi siya umiiral kaya nais po ng Pangulo na magkaroon ng panibagong batas para mabigyan siya ng authority na ma-reduce ang excise tax (At present, it is no longer in effect, which is why the President wants a new law that would give him the authority to reduce the excise tax),” Castro added.
She also echoed Marcos’ assurance that the excise tax cut proposal would only be temporary.
Amid tensions in the Middle East, Marcos on Tuesday assured the public that the country has sufficient oil supply, with stockpiles ranging from 29 to 67.5 days, depending on the product.
Marcos also expressed the government’s readiness, should Dubai crude range between USD80 and USD90 per barrel for two months. (PNA)
