MANILA — Despite the call to suspend the excise tax on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law, economic managers will continue to implement the policy, Trade Secretary Ramon Lopez said Monday.
In an interview, Lopez said the tax collection from this policy is important for the government, as this will be invested in social services.
“We’ve not discussed that. To us, maybe it’s understood, it’s already factored in in the budget,” Lopez said.
“The revenue is counted, which will be reflected, realized in services that will benefit the population, the people — health, education, salary of policemen and military,” he added.
Last week, the Employers Confederation of the Philippines and the Philippine Chamber of Commerce and Industry called for the suspension of the excise tax on oil, which they consider as a measure that contributes to the current inflationary pressure.
Under the TRAIN law, implementing another hike in excise tax on oil will be suspended if international crude prices based on Means of Platts Singapore will reach an average of USD80 per barrel three months before the scheduled increase.
But Lopez noted that the impact of excise tax on oil to inflation is minimal compared to the rising world prices of petroleum products.
He added that the law also provides subsidy, the Pantawid Pasada Program, to public utility vehicle (PUV) drivers that are being directly affected by the increasing oil prices. The Department of Energy is also partnering with oil companies to give discounts to (PUV) drivers.
The TRAIN law likewise gives unconditional cash transfer to poor families and individuals to cope with the increasing prices of goods and services, Lopez cited. ( /PNA)
