Wednesday, July 31, 2019

Oil firms back gov’t fuel marking program


Danessa Rivera (The Philippine Star) - July 31, 2019 - 12:00am

MANILA, Philippines — Oil industry players have expressed full support for the government’s fuel marking program which they see as a means to plug oil smuggling in the country.
In a statement, the Philippine Institute of Petroleum (PIP) said the program would serve as a mechanism to fight smuggling and deter revenue leakages.
 “As early as last year, our members have been working closely with the Department of Finance (DOF) to ensure the program’s proper and effective implementation. We support the government’s efforts to curb smuggling which continues to undermine the industry and the government in general,” PIP said.
The group believes that fuel marking will address the shortfall in revenue collection provided that it is done on a level playing field.
It has consistently stressed that the program has to be implemented across all industry players in order for it to be fully effective.
“The success of this program would mean a significant increase in tax collection and the opportunity to utilize these for much-needed social services and infrastructure. Consumers would also be assured of the quality of fuels in the market coming only from reputable sources,” PIP said.
Prior to the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the government lost approximately P40 billion in government revenues due to petroleum smuggling according to various independent studies.
The DOF consulted PIP member-companies on the draft implementing rules and regulations (IRR) last June.

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