Last Monday, presidential aspirant Senator Ping Lacson called for the suspension of excise tax on fuel. The Department of Finance (DOF) has finally answered, rejecting the idea of suspending fuel excise tax despite the non-stop price hike for several weeks now.
A day after Senator Ping Lacson’s proposal, DOF Undersecretary Paola Alvarez told the media that suspending the excise tax on fuel is not the best option right now, even for Filipinos in the lower income bracket.
According to a study conducted by DOF, 48.8% of the country’s fuel consumption is made by the higher socioeconomic classes, while only 13.8% is used by the disadvantaged segment of society. So, lifting the excise tax on fuel will benefit the former, not the latter.
Instead, the Department of Finance is proposing a subsidy as it will specifically target poor people.
“Pag overall sinuspinde po natin lahat – iyong excise tax including iyong VAT (value added tax) on excise tax ng lahat ng klase po ng fuel – mawawalan po tayo ng PHP 138.8 billion in one year or 0.6% of our GDP (gross domestic product). Ang pinu-propose po natin, imbes po na suspendehin natin overall, magbigay po tayo ng targeted support doon sa mga mahihirap na nangangailangan,” according to the DOF Undersecretary.
