A lawmaker has called on the government to activate the provision under the Tax Reform for Acceleration and Inclusion (TRAIN) Law to protect Filipinos from the continued surge in global oil prices.
Sen. Bam Aquino, who pushed the said safeguard, automatically suspends the excise tax on petroleum products if the average price of oil in the global market reaches $80 per barrel in the next three months.
Local oil companies announced that prices of gasoline and diesel are set to increase by P1.90 and P1.20 per liter, respectively, on Tuesday.
“Sa isinulong nating safeguard sa TRAIN Law, pinapayagan ang automatic suspension ng pangongolekta ng excise tax sa langis kapaglumampas sa $80 kada bariles ang presyo ng langis sa world market,” Sen. Aquino said.
“Makatutulong ang suspension na ito para mabawasan ang bigat ng inaasahang pagtaas ng presyo ng langis dahil sa kaguluhan sa Middle East,” he added.
Aquino also warned that the surge in oil prices will trigger a domino effect on food and other goods, imposing an additional burden on Filipinos. He is expected to submit a resolution on the matter.
In the 20th Congress, the senator filed Senate Bill No. 265 seeking to abolish the excise taxes imposed on diesel, kerosene, liquefied petroleum gas (LPG), fuel oil, and unleaded gasoline under the TRAIN Law.
“These taxes have contributed to higher fuel prices, which in turn cascade into increased costs for goods and services, disproportionately affecting low- and middle-income Filipinos,” he said.
Once enacted into law, Aquino stressed that the measure will provide immediate relief to commuters and drivers, especially users of diesel-powered jeepneys, buses, and delivery vehicles.
It will also lead to lower household expenses on cooking fuel and lighting, particularly for poor and off-grid communities, and ease the burden on producers and small businesses by reducing fuel and logistics costs.
“It will also help stabilize prices of basic goods and services amid persistent inflationary pressures,” Aquino pointed out.
To recall, Aquino is championing 3 legislations designed to cushion the high cost of living including Pag-Abolish sa Tax sa KurudoBill (SB 265) a measure seeks to permanently remove excise taxes on diesel, kerosene, LPG, and gasoline; Kuryenteng Walang VAT Billwhich aims to strip the 12% Value-Added Tax (VAT) from electricity bills, providing direct relief to every household and small business; and Commuters’ Rights and Welfare Act that proposes institutionalized subsidies for commuters and students, ensuring that the most vulnerable are not stranded by rising transport fares.
