Senator Imee Marcos is calling for a one-year suspension of the value-added tax (VAT) on oil products amid lingering economic difficulties due to the COVID-19 pandemic.
Marcos, who chairs the Senate committee on economic affairs, noted another price hike by oil companies that reached per liter increases of P1.15 for gasoline, P0.60 for diesel, and P0.65 for kerosene.
“Since January, fuel prices per liter have already increased.”
“Since January, fuel prices per liter have already increased by P13 for gasoline, P10 for diesel, and P9 for kerosene,” the veteran legislator said.
The seasoned lawmaker stressed suspending the 12% VAT on oil products will provide relief to various consumers other than just motorists.
“The higher costs will be passed on to the ordinary consumer.”
“Oil price hikes have a domino effect on agricultural products and other essentials. The higher costs will be passed on to the ordinary consumer who may still not have a job but has no choice but to deal with rising prices of food, electricity, and other goods,” the lady senator explained.
The 12% VAT on fuel products was applied by the government in addition to the excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
President Rodrigo Duterte signed the law imposing excise taxes of P2.50 per liter of diesel and P7 per liter for gasoline in December 2017.
