Maling singil sa krudo? Consumer group files complaint for VAT overcharging

2019-01-18 14:41:06

Laban Konsyumer Inc. (LKI) submitted its complaint with the Department of Finance (DOF) regarding the “overcharging gaps” allegedly done by oil companies in implementing the pass-on of value added taxes (VAT) as component of excise taxes in the overall fuel prices.

LKI President Victorio Mario A. Dimagiba told Manila Bulletin that he already raised the group’s “VAT overcharging” concerns to Finance Assistant Secretary Antonio Lambino.

The group added that it is seeking “immediate correction, implementation, audit of the excess VAT payments and appropriate remedial action.”

“Consumers were being overcharged and were thus overpaying VAT,” which he further claimed is “a heavy burden especially on the poor consumers’ daily lives,” Dimagiba said in his letter-complaint.

According to LKI, the total overcharging could reach billions of pesos based on the volume of sales reported to the Department of Energy (DOE). 

The energy department and oil firms have yet to comment on the issue. DOE-Oil Industry Management Bureau Director Rino Abad was also included in the LKI’s letter-complaint.

Dimagiba noted that swift action was needed from the concerned government agencies over the pass-on of corresponding taxes of fuel products, and relayed his personal experience with excess VAT payments when he filled up his tank at a Petron gasoline station.

“VAT was paid on top of VAT of the second tranche of excise taxes and resulted in overpayment of VAT of P0.025 per liter,” he said.

Oil companies have implemented the P2.00 per liter increase in excise taxes for fuel products starting January this year, following the TRAIN Law’s second tranche tax package.

https://powerphilippines.com/2019/01/17/maling-singil-sa-krudo-consumer-group-files-complaint-vat-overcharging/

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