Occidental Mindoro Representative Leody Tarriela has filed a bill aimed at cushioning the impact of high gasoline and diesel prices by applying progressive excise taxation on fuel amid the projection that prices of diesel would increase by as much as P6 per liter of gasoline.
Under House Bill No. 3628, the excise tax shall gradually decrease as fuel prices increase.
For unleaded premium gasoline, if the price per liter is P50 or less, the excise tax shall be at P10. It shall gradually decrease by P1 for every P5 increase in per liter prices until the excise tax reaches only P4 when the price per liter is P75 or higher.
For diesel, the excise tax is pegged at P6 if the price per liter is P50 or less.
The tax also decreases by 50-centavo increments, until it is only at P3 if the price per liter of diesel increases to P75 or higher.
“Magiging mas mababa ng P6 ang gasoline at P3 naman sa bawat litro ng diesel.”
“Kung ang HB 3628 ay ma-isasabatas, ang nakaakmang pagtaas ng presyo ng petrolyo ay maiibsan ng kaunti. Magiging mas mababa ng P6 ang gasoline at P3 naman sa bawat litro ng diesel,” Tarriela said.
From 1997 when the Tax Reform Act was enacted, until 2017, there was no excise tax on diesel, while it was at P4.35 per liter for gasoline.
After the passage of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law in 2017, the excise tax on diesel was at P2.50 per liter in 2018, P4.50 in 2019, and P6 per liter starting in 2020.
For gasoline, the fuel excise was increased to P7 in 2018, P9 in 2019, and P10 from 2020 onwards.
The TRAIN law was enacted for the purpose of generating additional revenues, primarily to finance the “Build, Build, Build” infrastructure programs of the Duterte administration.
HB 3628 will not totally get rid of the excise taxes on petroleum but is a compromise measure as it recognizes the need for the government to continuously raise revenues for projects under the TRAIN law.
“HB 3638 will cushion this burden.”
“HB 3638 will cushion this burden. Moreover, by having these graduated reductions of excise tax as petroleum prices increase, then we can truly say that our system of taxation is indeed progressive,” the legislator concluded.
