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6月22日のまにら新聞から

Marcos prefers helping sectors affected by fuel price hikes than suspending excise tax

[ 276 words|2022.6.22|英字 (English) ]

President-elect Ferdinand Marcos Jr. said he prefers to focus on providing assistance for sectors affected by the oil price hike instead of reducing the excise tax.

"I prepare to handle the problem on the other side of the equation and provide assistance to those in need because if you reduce the excise taxes that does not necessarily help those who are most in need," Marcos said in a press conference on Monday.

"I am thinking that those who are immediately affected like for example the transport all those who are directly affected, let's focus on those who really needs help, because those who are rich, they can afford to pay even with vat and those who are in danger of losing their livelihoods because of the increase in the oil, I think we should focus on them," he added.

Finance Secretary Carlos Dominguez III told President Rodrigo Duterte last March the suspension of fuel excise taxes would lead to a revenue loss of P105.9 billion, or about a half-percent of gross domestic product this year.

Dominguez said the primary beneficiaries of suspending fuel excise taxes would actually be the top 10 percent of the country’s households, as they are estimated to use up around 48.8 percent of the Philippines’ total fuel consumption this year, while the bottom 50 percent will only consume around 13.9 percent, the Department of Finance said in its website on March 16.

On Tuesday, where another round of fuel prices increases took place, transport groups called for a partial suspension of the excise tax on fuel products.

Diesel prices are at least P89 a liter while gasoline costs at least P83. Robina Asido/DMS