Workers prepare LPG tanks for delivery for refill in a reseller in Brgy. Bagong Silangan in Quezon City on February 1, 2023. Mark Demayo, ABS-CBN News
MANILA — As fuel prices continue to rise amid the ongoing conflict in the Middle East, Finance Secretary Frederick Go announced on Tuesday that he has signed a resolution suspending the excise tax on LPG and kerosene.
His announcement came during the Senate budget hearing for the Department of Finance, after Senator Bong Go reiterated his call to suspend fuel excise taxes amid the Middle East conflict.
“Kanina lang po umabot sa akin, pinirmahan ko agad-agad,” the Finance Secretary said.
The DOF, however, said it will not suspend the excise tax on diesel and gasoline, saying this would be “not progressive” and would result in a revenue loss of P12 billion per month.
Diesel going up by more than P8 this week
“Number one, if you remove taxes on diesel and gasoline, it will not be progressive. Ibig sabihin po nito, yung theory po na pinarating sa amin ng mga ekonomista ay ang mga mayayaman ang pinakamalakas gumamit ng diesel at gasolina,” Go explained.
“At kung tinanggal po natin ang taxes sa lahat, ang mas makikinabang po dito ay mga mayayaman kasi sila po yung malakas gumamit ng diesel at gasolina,” he added.
The agency said it will instead provide targeted subsidies to vulnerable sectors as fuel prices continue to increase.
Excise taxes on LPG, kerosene return as world oil prices decline
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