By Joann Villanueva/PNA
MANILA — Budget and Management Secretary Benjamin Diokno on Wednesday said the implementation of an additional PHP2 per liter increase in oil excise taxes scheduled for 2019 is definitely suspended.
In a briefing, he said the Office of the Executive Secretary has informed him that the proposal of economic managers to suspend the oil excise tax hike next year has been approved.
He, however, said that he is not sure if the suspension will be made through an Executive Order or a Memorandum Circular.
The approval was made even as global price of oil has gone down below USD80 per barrel. Under the Tax Reform for Acceleration and Inclusion (TRAIN) law, hikes in oil excise tax will be suspended if global oil price averages at USD80 per barrel for three consecutive months.
Even if prices of oil in the international market have declined, Diokno said economic managers “will stick to that decision.”
He, however, clarified that reviews on the suspension will be done on quarterly basis.
Under the TRAIN law, oil excise tax hike this 2018 is PHP2.50 per liter, PHP2 per liter in 2019 and PHP1.50 in 2020.
The government is programmed to gain PHP26 billion from the PHP2 per liter oil excise tax for next year.
Diokno also stressed that drivers eligible for fuel subsidy will be given PHP10,000 worth of subsidy next year, twice the amount programmed for this year.
