- President Rodrigo Duterte open to suspending the excise tax on fuel
- Senator Franklin Drilon said the President has the power to suspend the excise tax on fuel
- A TRAIN law provision said the excise tax on fuel could only be suspended if the price of oil stays at $80 per barrel for three consecutive months
President Rodrigo Duterte on Tuesday, October 19, 2018, said he may be open to the proposal to suspend the excise tax on petroleum products.
The excise tax on fuel amid soaring crude prices in the world market has contributed to the country’s quickening inflation, as per an ABS-CBN story. To mitigate the impact of soaring prices of commodities, some senators endorsed a resolution calling for the suspension of the excise tax on petroleum products.
Asked by reporters if he would support the proposal, President Duterte answered “maybe”; telling them that he already asked Finance Secretary Sonny Dominguez to look into the proposal.
However, the President maintained that the sustained increase in the prices of commodities is caused by the rising oil prices in the world market.
“If they announce that there will be an increase in oil, everything will follow. That drives inflation,” President Duterte said.
A provision under the Tax Reform for Acceleration and Inclusion (TRAIN) law said that the excise tax on petroleum products could only be suspended if the price of oil stays at $80 per barrel for three consecutive months.
Senate Minority Leader Franklin M. Drilon said the President should not wait for the three-month period as provided under the TRAIN law before suspending the excise tax on fuel. He said President Duterte has the power to suspend it.
“But I don’t think we need to wait for that because the President has the power to suspend the excise tax hike as a result of the price of oil,” Drilon said.