Gov’t to suspend implementation of add’l fuel excise tax

In a speech in Taguig City, Go said the deferment of its implementation was “to arrest the rising price of oil and its effects on the inflation rate.” (PNA file photo)

MANILA — The government is temporarily suspending the implementation of the additional fuel excise tax to tame inflation, Special Assistant to the President Christopher “Bong” Go announced Sunday.

President Rodrigo Duterte’s top aide made this remark amid clamors for the government to suspend the implementation of higher oil excise tax rates given the continued increases in domestic oil prices.

In a speech in Taguig City, Go said the deferment of its implementation was “to arrest the rising price of oil and its effects on the inflation rate.”

The second tranche of the excise tax on fuel, amounting to at least PHP2 per liter, is supposed to take effect in January 2019.

Go said the temporary suspension will be in effect “until the right time.”

In 2018, the government imposed a PHP2.50 tax per liter of diesel and PHP1 on liquefied petroleum gas under the first tranche of excise tax on fuel.

The Tax Reform for Acceleration and Inclusion (TRAIN) law levies a total of PHP6 per liter on oil products, spread over three years starting 2018 up to 2020.

Department of Finance (DOF) Undersecretary Karl Chua earlier said a suspension of excise tax increases levy on petroleum products under TRAIN law is possible next year, but only if global crude prices average USD80 per barrel in the last quarter of 2018.