Senate Minority Leader Alan Peter Cayetano welcomed the move of President Ferdinand Marcos Jr. to certify as urgent House Bill No. 8418, a measure that would allow the temporary suspension or reduction of excise taxes on fuel amid rising global oil prices linked to tensions in the Middle East.
Noting that the House measure addresses the same concern raised in Senate Bill No. 1927 which he filed with Senator Pia Cayetano, the Minority Leader said the certification shows that the government recognizes the need to respond quickly when global events push oil prices higher and affect the lives of Filipinos.
“Let’s not miss opportunities.I don’t think there’s a problem that we expect the worst or prepare for the worst. Pagka inubo ang Middle East, nagkakahika ang buong mundo,” the Minority Leader said.
House Bill No. 8418 allows the President to suspend or reduce excise tax on fuel products for a period of six months, Under the proposal, this authority granted to the President may only be exercised until December 31, 2028.
The Senate proposal, for its part, seeks to establish a mechanism that would allow the automatic suspension or reduction of fuel excise taxes once global oil prices reach a critical level.
The Senate bill proposes amendments to Section 148 of the National Internal Revenue Code of 1997, as amended by the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
Under the Senate measure, the President may suspend or reduce excise taxes on fuel through an executive order once the average Dubai crude oil price based on the Mean of Platts Singapore reaches US80 dollars per barrel for one month, upon recommendation of the Development Budget Coordination Committee (DBCC).
The suspension or reduction would automatically be lifted once global oil prices fall below the threshold.
In their explanatory note, the Cayetanos cited the growing instability in major oil-producing countries in the Middle East such as Saudi Arabia, Iran, Iraq, Kuwait, Qatar, and the United Arab Emirates. They warned that escalating strikes and retaliatory attacks threaten the stability of one of the world’s most critical energy supply hubs.
“These developments demonstrate the need for a responsive mechanism that authorizes the suspension of excise taxes on fuel whenever extraordinary events or external shocks significantly disrupt global oil prices,” the Cayetanos said in the bill’s explanatory note.
They added that having such a safeguard would allow the government to act faster to mitigate inflation and reduce the burden on consumers without waiting for Congress to pass a new law each time global oil prices surge.###