MANILA - Amid the volatility of crude oil price in the world market, Sen. Grace Poe will try congressional intervention by filing a bill seeking to impose “automatic suspension” of the government’s excise tax collection on fuel.
Poe said Senate Bill 2445 targets the suspension of excise tax collection on gasoline and diesel.
“The rising cost of fuel is certain to have a spillover effect on the cost of other products, especially food which accounts for a big chunk of a household’s expenses. Such will aggravate poverty and hunger among our people. If government cannot substantially provide for its people, then at the very least, it must do all it can to ease their burden,” Poe said in a statement.
Suspending excise tax collection according to her, could reduce gasoline prices by P10 per liter, and diesel, by P6 per liter.
Poe's proposed measure also aims to amend section 148 of the National Internal Revenue Code by allowing the suspension of excise taxes on regular gasoline, unleaded premium gasoline, and diesel.
A total of P1 billion will be released to fund cash grants for public utility drivers hit by the rising costs of fuel, the Development Budget Coordination Committee (DBCC) earlier said.
Prices of petroleum spiked since late August, prompting lawmakers as well as transport groups to seek suspension of the excise taxes on fuel.