Updated November 15, 2018, 7:41 AM By Genalyn
Kabiling
The nation can expect a respite from
higher fuel tax rate increase next year following a suspension order authorized
by President Duterte.
The President has formally approved
the suspension of the next round of excise tax increase on oil products under
the Tax Reform for Acceleration and Inclusion (TRAIN) law amid efforts to tame
the country’s high inflation.
The latest tax relief measure was
upon the recommendation of the President’s economic team led by Finance
Secretary Carlos Dominguez.
“With reference to your Memorandum
dated 11 October 2018, please be informed of the APPROVAL of your
recommendation to suspend the next scheduled increase in the excise tax on
fuel, subject to Section 43 of Republic Act No. 10963 or the ‘Tax Reform for
Acceleration and Inclusion Law,’” the memorandum read.
The memorandum was addressed to
Dominguez, Budget Secretary Benjamin Diokno and National Economic and
Development Authority head Ernesto Pernia, and Energy Secretary Alfonso Cusi.
The memorandum was signed by
Executive Secretary Salvador Medialdea by authority of the President last
November 8. The document was released to the media Wednesday.
Malacañang earlier announced that it
was considering the suspension of the additional P2 levy on fuel products
scheduled in January 2019 under the tax reform law even at the risk of losing
P40 billion in revenues.
The TRAIN law, signed by President
Duterte, allows the government to suspend the next round of increase in fuel
excise tax if the three-month average of Dubai crude hits $80 per barrel.
The latest move was considered amid
government’s move to curb inflation which remained at 6.7 percent last month.
The high oil prices were among the factors reportedly contributing to the
increase in consumer goods.
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