New Excise Tax on Petroleum products effective January 11

2019-01-04 19:09:41

MANILA, Philippines — Despite the rollback on petroleum products, there will be a new excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

As stated in the law, there will be a P2.24 per liter price hike on gasoline and diesel; P1.12 per liter increase on kerosone; and P1.12 per kilo on LPG.

However, the Department of Energy has reminded all oil companies that they need to consume their petroleum stocks in 2018 before the implementation of the excise tax.

The Department of Energy (DOE) has been monitoring the oil stocks of oil companies since September to ensure that these will not be set with the excise tax in 2019.

Oil companies need to declare in a signage if they are already implementing the excise tax.

“Inuubos muna nila ang mga old inventories bago mag impose ng new excise tax. Ibig sabihin kapag meron ng new excise tax dapat yung mga gasoline stations din may naka-post silang tarpaulin na nagsasabi na ang binebenta nilang petroleum products as of the moment ay may new excise tax na,” said Oil Industry Bureau Assistant Director Rodela Romero.

The second tranche of excise tax was approved during the price drop of petroleum products in world market.

In 2018, there are more price increase compared to price rollback in diesel and gasoline.

A consumer group believes that poor Filipinos will not be able to bear the new tranche of excise tax on petroleum products in 2019.

For those who can pay the excise tax such as businessmen, the excise tax can be regain through the price hike of prime commodities which will further burden poor Filipinos.

“Ang aming pagtutol dito hindi ito equitable at ito’y hindi progressive taxation sa madaling salita anti-poor po,” said Laban Konsyumer Group President Vic Dimagiba.

The consumer group appeals to the the new Congress to check TRAIN Law after elections.

“Mayroong eleksyon, may bagong Kongreso. Magandang balikan ng bagong kongreso itong TRAIN law. Itong bago ‘di natin alam, puwede nilang repasuin ang TRAIN law para hindi ito anti-poor,” said Dimagiba. — Joan Nano

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