THE Energy department said Sunday that it is closely monitoring the implementation of excise taxes on petroleum products that took effect at the start of the year under the third and final tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
In a statement, Energy Secretary Alfonso G. Cusi said his office is “undertaking all necessary measures to ensure that all tranches of excise taxes on petroleum products are properly implemented.”
The Department of Energy (DoE) is looking after how oil companies are following the rules through its Oil Industry Management Bureau.
Mr. Cusi said on top of the regular monitoring of companies’ compliance to national quantity and quality standards, the bureau has been performing verification inspections to make sure that depots and terminals comply with the provisions of the TRAIN Law.
Under the law’s final tranche, additional excise taxes of P1.00 per liter for gasoline, P1.50 per liter for diesel, and P1.00 per kilogram for household liquefied petroleum gas (LPG) will be imposed.
There will also be an additional 12% value-added tax, bringing the total to P1.12 per liter for gasoline and per kilogram of LPG, and P1.68 per liter for diesel.
Stocks that are part of the oil companies’ Dec. 31, 2019 inventories are not to be subjected to additional excise taxes.
“Liquid fuel retail outlets, or what we commonly call gasoline stations, are also expected to follow the same, and are required to display a tarpaulin indicating which of their products have been additionally taxed, and the date of implementation,” Mr. Cusi said.
As of Jan. 24, 2020, the DoE said 48 of 67 LPG depots, and 40 of 116 liquid fuel depots have imposed additional excise taxes. They had indicated that their Dec. 31, 2019 inventories were depleted, it added.
For LPG refilling plants, four out of 297 implemented additional excise taxes starting on Jan. 10, 2020.
The DoE said to date, Pilipinas Shell Petroleum Corp., PTT Philippines Corp., Chevron Philippines, Inc., Petro Gazz Corp., Seaoil Philippines, Inc., and Total Philippines Corp. have informed the department of their implementation of additional excise taxes. It said the oil companies have a combined liquid fuel retail outlets of at least 900, accounting for about 10% of the 9,003 outlets nationwide.
The department has given its assurance that it “will continue monitoring retail outlets and their implementation of the taxation scheme to uphold the best interests of all consumers.” — Victor V. Saulon
