by Lenie Lectura - July 28, 2016
THE Department of Energy (DOE) will
thoroughly review a proposal to raise taxes on petroleum products, stressing
that such imposition will definitely lead to higher pump prices.
The DOE assured on Thursday that a
study would be conducted, even as the agency admitted that it is yet to be
furnished a copy of the proposal. “It’s not even formal yet. It’s not even sent
to Congress yet,” according to DOE Spokesman Felix William Fuentebella.
This proposal emanated from the
Department of Finance (DOF), which said the P4.50-per-liter excise tax on
petroleum products remain unchanged since 1997.
Under the National Internal Revenue
Code of 1997, the government imposes a fixed excise rate for fuel products:
unleaded gasoline at P4.35 per liter and leaded gasoline at P5.35 per liter.
The DOF said the adjustment would be
“substantial” and that it must be done now while petroleum products are still
low.
“The reason this is coming out is
because the prices are going down,” Fuentebella said.
“We cannot agree or disagree with
the DOF,” he added. The DOE, meantime, is prepared to provide a more accurate
data to the finance department and to Congress “with regard to our mandate to
monitor gasoline and diesel prices.”
“At the end of the day, the
President will sign or veto,” Fuentebella said. When asked if additional taxes
are still necessary should pump prices go up, sometimes, dine-delegate
ng Presidente,” Fuentebella said.
In 2015 the country’s consumption of
gasoline stood at 5.22 billion liters; diesel, at 9.34 billion liters.
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