Friday, January 4, 2019

Six fuel sellers jump the gun on collecting new tax




THE Department of Energy (DoE) has ordered six gasoline stations of Petron Corp. to explain why they prematurely collected excise and value-added taxes on gasoline and diesel products sold at the turn of the year.
The “show cause” order follows the DoE’s estimate that old fuel inventory, which was taxed at the old rates in force in 2018, was good for 15 days.
New fuel taxes took effect on Jan. 1, 2019.
Energy Undersecretary Felix Wiliam B. Fuentebella said in a news conference Thursday that the department was set to serve the order on the same day.
Petron notified the DoE that some of its fuel retailers were collecting the new taxes. It said the fuel stations were located in Tarlac, Zambales, Bulacan and Pampanga.
On Dec. 28, 2018, DoE Secretary Alfonso G. Cusi asked oil companies to dispose of their 2018 fuel inventory before applying the second round of the excise tax to petroleum products for 2019.
Mr. Fuentebella said the imposition of the new taxes comes at a time when prices of petroleum products are declining. He said another price cut is expected to be announced next week.
Based on DoE computations, the first tranche of the tax reform on Jan. 1, 2018 increased the price of gasoline by at least P2.97 per liter. The price of diesel increased by P2.80 per liter and kerosene by P0.36 per liter. The price increases also included the 12% value-added tax.
For 2019, the increase for gasoline prices under TRAIN is P2.24 per liter, while for diesel and kerosene the rise is at P2.24 and P1.12 per liter, respectively.
For 2020, the price increases for gasoline, diesel and kerosene are P1.12, P1.68 and P1.12 per liter, respectively. — Victor V. Saulon

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