Wednesday, August 3, 2016

DOE: Petroleum-tax hike could lead to ‘substantial’ fuel-price adjustment



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.

No comments:

Post a Comment