Diokno positive on oil excise tax hike suspension

He said the Office of the President (OP) is set to make an announcement soon. (File Photo: Department of Budget and Management/Facebook)

MANILA — Budget Secretary Benjamin Diokno is optimistic that the proposed suspension of the fuel excise tax hike for 2019 will push through but said reviews will be done, including an outlook on international petroleum prices for 2020.

In an interview on the sidelines of the Euromoney investment forum in Makati City on Friday, Diokno said the recommendation by economic managers for the temporary suspension of the PHP2 excise tax hike on fuel products next year remains even as oil futures for next year predict sustained declines.

He said the Office of the President (OP) is set to make an announcement soon.

The Tax Reform for Acceleration and Inclusion (TRAIN) law has a provision that allows the temporary suspension of the excise tax hikes if global oil prices average USD80 per barrel for three months in a row.

For 2019, the suspension of the second installment of the excise tax increase, which amounts to PHP2 per liter for both gasoline and diesel, would mean PHP41 billion in lost revenues for the government.

Diokno reiterated an earlier statement of Finance Secretary Carlos Dominguez III, who said a review will be conducted six months after the suspension takes effect.

Under TRAIN, the excise tax hike on fuel products has been set at PHP2.50 per liter this year, PHP2 per liter for 2019, and PHP1.50 per liter for 2020.

Diokno also said that if the excise tax hike is suspended next year, beneficiaries of the Pantawid Pasada program would receive the same amount they are receiving this year, which totals PHP5,000 for the whole year.