Senator Kiko Pangilinan filed a bill that would authorize the President to temporarily suspend excise taxes on petroleum products during periods of global crisis, aiming to cushion Filipino consumers and businesses from sudden spikes in fuel prices amid the Middle East conflict.
Senate Bill No. 1940 aims to give the President the power to suspend or reduce fuel excise taxes during national or global economic emergencies.
The measure will amend Section 148 of the National Internal Revenue Code of 1997, which currently states that the recommendation for an excise tax suspension will depend on the Development Budget Coordination Committee (DBCC) in consultation with the Department of Finance.
“During extraordinary events, higher global oil prices are fully passed on to consumers.”
In the explanatory note of his proposed measure, Pangilinan emphasized the urgent need to suspend excise taxes on petroleum products during “extraordinary events,” pointing out that higher global oil prices are fully passed on to consumers.
“Such measures would support timely relief, help ease inflationary pressures, and reduce cost burdens on Filipino consumers, particularly farmers, fisherfolk, transport workers, and small businesses,” the bill read.
“Granting the President continuing authority to suspend or reduce fuel excise taxes during extraordinary circumstances would enable a timely policy response to exceptional oil price volatility and mitigate its impact on Filipino consumers.”
“Granting the President continuing authority to suspend or reduce fuel excise taxes during extraordinary circumstances would enable a timely policy response to exceptional oil price volatility and mitigate its impact on Filipino consumers,” the veteran legislator added in his measure.
The proposed amendment will authorize the President to temporarily reduce or suspend fuel excise taxes upon the recommendation of the DBCC and in consultation with the Department of Energy (DOE).
The bill also provides that the suspension or reduction must be lifted when the extraordinary condition is no longer present.
The seasoned lawmaker’s proposal comes amid the Department of Energy’s announcement that oil prices will increase this week by ₱7 to ₱13 per liter for gasoline, ₱17.50 to ₱24.25 per liter for diesel, and ₱32 to ₱38.50 per liter for kerosene.
