MANILA - Malacañang has formally approved the suspension of the two-peso fuel excise tax increase scheduled in January 2019, a document released Wednesday showed.
In a memorandum, Executive Secretary Salvador Medialdea told Finance Secretary Carlos Dominguez, Budget Secretary Benjamin Diokno and Socioeconomic Planning Secretary Ernesto Pernia that the Palace has approved their recommendation to suspend the next scheduled increase in the excise tax on fuel.
The suspension of the P2 per liter excise tax increase on diesel and gasoline was approved as inflation hit its highest level in nearly a decade.
The suspended increase would have raised the total excise tax on gasoline to P9 from P7 per liter and on diesel to P4.50 from P2.50 per liter.
If the tax increase is suspended for the entire 2019, it could result to P41.6 billion in foregone revenues. This could be offset by P14 billion in value added tax collections, Finance Undersecretary Karl Kendrick Chua earlier told a Senate hearing.