Round 2 of fuel tax hike only for new stocks: Energy dept

ABS-CBN News

Posted at Dec 26 2018 11:18 AM

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MANILA -- The second round of increase in excise taxes on fuel will apply only to new stocks that are expected to retail from Jan. 15, the Department of Energy said Wednesday.

"Iyung mga lumang hawak-hawak na paninda, hindi naman iyan pinatawan ng excise tax so hindi dapat sisingilin ang ating mga kababayan," Energy Undersecretary Wimpy Fuentebella told radio DZMM.

(The excise tax does not apply to old stocks so our consumers should not be charged higher rates.)

There will be a "point-to-point" monitoring of new stocks to ensure proper implementation of the tax increase.

"Kung medyo naagahan po ang singil nila, mas madali nating mahuhuli iyan," said Fuentebella.

(If they charge it early, we will catch them easily.)

The Tax Reform for Acceleration and Inclusion scheduled excise tax increases every year for 3 years starting Jan. 1, 2018, when duties were increased by P2.50 per liter for diesel, P1 per kilo of LPG, and P2.65 per liter of regular and unleaded gasoline.

TRAIN imposed excise taxes on diesel for the first time while the levy on regular and unleaded gasoline was raised to P7 from P4.35.

Economic managers earlier recommended the suspension of the second tranche as inflation hovered at near 10-year highs. President Rodrigo Duterte allowed the second round to proiceed after price increases steadied at 6.7 percent in September and October.

DZMM, 26 December 2018