A HOUSE LEADER has filed a bill that seeks to bring down fuel excise taxes until 2025 to address high costs due to the rise in global oil prices.
House Deputy Speaker Rufus B. Rodriguez filed House Bill 10246 on Thursday that seeks to bring back the excise tax on fuel products from Jan. 1, 2022 to Dec. 31, 2025 to the rates provided under the National Internal Revenue Code before it was amended.
This would set the excise tax on regular gasoline at P4.35 per liter (/L), unleaded at P5.35/L, while diesel, kerosene, and liquefied petroleum gas will not be taxed.
Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion Law raised excise tax on fuel in three tranches from 2018 to 2020. These rates are now at P10/L for gasoline, P6/L for diesel, P5/L for kerosene, and P3/L for liquefied petroleum gas.
The Department of Finance has warned that the suspension of excise taxes on petroleum would result in as much as P131.4 billion in foregone revenues for 2022, which could affect the country’s economic recovery from the coronavirus pandemic.
As of Oct. 26, pump prices for gasoline and diesel have increased by P20.80/L and P18.45/L respectively year to date, according to Energy department data. — R.L.C. Ku