Lawmaker pushes 50% tax cut on coal, other oil products
A CONGRESSMAN on Sunday called on his peers to fast-track the approval of a bill that seeks to cut the excise tax on coal and petroleum products by 50% to ease the effects of rising fuel prices on inflation.
Camarines Sur Rep. Luis Raymund F. Villafuerte pushed the price-cut proposal as oil companies raised on Aug. 15 pump prices of gasoline and diesel for the sixth time in six weeks amid rising global demand and continuous supply cuts by Saudi Arabia, the world’s biggest oil exporter.
He earlier filed House Bill 8231 which seeks to reduce the excise tax on petroleum products and coal by 50%, suspend the imposition of applicable duties on their importation and exempt the system loss charge in the sale of electricity from the value-added tax for three years.
It will amend Sections 109, 148 and 151 of the National Internal Revenue Code (NIRC) of 1997.
The congressman said the bill, which is pending at the energy committee, seeks to ease the burden on consumers and enterprises amid spiraling prices.
Local oil companies increased gasoline prices by P1.90 a liter, P1.50 for diesel and P2.50 for kerosene last week.
These price adjustments resulted in a year-to-date net increase of P13.40 a liter for gasoline, P8.60 a liter diesel and P5.14 a liter for kerosene, according to the Energy department.
Unioil Petroleum Philippines, Inc. at the weekend said fuel prices are expected to increase for the seventh straight week on Tuesday.
Crude oil prices have been rising in the past month due to tightening supply as the Organization of the Petroleum Exporting Countries (OPEC+) and its allies continue to cut output.
Data from the Philippine Statistics Authority showed that the weight of diesel and gasoline to the overall consumer price index is 0.6% and 1.8%, respectively.
Mr. Villafuerte urged the Energy department to establish a strategic oil reserve for additional petroleum inventory to stabilize pump prices of petroleum products and shield consumers and motorists from the debilitating effects of sky-high prices. — BMDC
