Senator Paolo Benigno A. Aquino IV on Thursday, May 10, filed a bill amending Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law, which would impose an automatic suspension on the excise tax on fuel when the inflation rate exceeds the target set by the government.
Senate Bill No. 1798 adds the following section under Chapter 1 of the National Internal Revenue Code (NIRC) of 1997 as amended by TRAIN law:
“Section 148-B. Automatic suspension of the excise tax on fuel – The imposition of excise on fuel under RA No. 10963 (TRAIN) shall be automatically suspended when the average inflation rate for a three month period exceeds the annual inflation target range that was set by the Development Budget Coordination Committee (DBCC) and the Bangko Sentral ng Pilipinas (BSP): Provided, however, that the excise tax on fuel prior to the effectivity of RA 10963 (TRAIN) shall remain in force during the period of suspension.” — Camille A. Aguinaldo