As global fuel prices soar and Dubai crude oil exceeds $100 per barrel, the Philippine Senate is moving to provide relief for Filipino households.
The committees on Energy, and Ways and Means have approved, in principle, several measures that would allow the President to suspend or cut fuel excise taxes during economic emergencies.
A central piece of this effort is Senate Bill 1923, which seeks to amend the national tax code to grant the executive branch the power to intervene immediately when global market volatility threatens local commodity prices.
Senate Bill 1923 or “An Act Granting the President of the Philippines Power to Suspend the Excise Tax on Petroleum Products During National or Global Economic Emergencies,” seeks to amend Section 148 of the National Internal Revenue Code of 1997.
The bill filed by Senator Bam Aquino aimed to shield the Filipino households from the soaring fuel prices. The Senator clarified that the automatic suspension triggers found in the 2017 TRAIN Law have long since expired.
“Way back in 2017, meron kaming provision na na-introduce na pwedemagkaroon ng automatic suspension on the excise tax kapag umabot ng $80 per barrel ang krudo. But this is already done. That was only operational for three years. Nangyarina ito. Kaya maganda siguro na may panukala. At alam natin na kapagtumaas ito, tataas rin ang presyo ng mga bilihin. So bago pa mangyari ito, mabigyan na natin ang Pangulo ng kapangyarihan na ma-suspend itopara maagapan natin yung pagtaasng presyo ng bilihin,” Aquino said.
Aquino says that waiting for the crisis to peak before acting is a recipe for disaster.
“We’re expecting this to go higher…yung paggawa ng batas, hindi yan instant. Kahit ma-certify pa yan na urgent, baka umabot pa rin yan ng isang buwan. So, we want to be ready for the increases that we’re expecting,” he said.
“Kapag tumataas ang presyo ng gasolina, ng diesel, tumataas ang lahat ng presyo ng lahat ng bilihin…kadalasan yung gobyernonatin nahuhuli sa mga response, nahuhuli sa mga posibleng aksyon. Nagre-react na lang kapag may masamang nangyari na,” he added.
Economic managers argued the staggering loss of revenue to be at over P130 billion if the government will suspend the excise tax. But Sen. Aquino believes that the real drain on the nation’s wealth is not tax relief for the poor but the trillions of pesos lost to systemic corruption.
“Itong argument about collections and kulang yung koleksyon, kulangyung makukuha ng revenue, ang kaakibat kasi niyan ay yung tamangpaggamit ng pondo ng bayan. We’re still in the middle of a scandal where trillions of pesos were lost to corruption. ‘Yan ang unahin natin. Unahin natin ‘yun to close the gaps and close the leaks pagdating sacorruption, mas malaki ‘yan ‘di hamak kesa sa posibleng mawawalana buwis dito sa krudo at dito sagasolina at diesel,” he explained.
Aquino emphasizes that high fuel prices are not just a transport issue; they trigger a rise in the cost of food and basic goods.
The senator is now pushing for a two-pronged attack, suspending the excise tax to keep the fuel prices down and reactivating direct subsidies for the public transport sector and delivery workers whose take-home pay is greatly affected by the fuel price hike.
“Habang yung mga workers nadirectly affected, yung diretso satake home pay nila yung mawawala, ‘yun naman, directly natin tulunganat mabigyan natin ng tulong,” he said.
Senate is generally supportive of the intentof the bill and begins to deliberate and consolidate legislative proposals while waiting for the House of Representatives to transmit its version of the bill. Once received, the Senate aims to sponsor the measure on the plenary floor as early as Monday next week.
President Ferdinand Marcos Jr. has indicated he is waiting for the final committee report from both houses before declaring the measure “urgent” andsignaled that he views this as a “precautionary tool” to safeguard thePhilippine economy.
