DOF suspends excise tax on LPG, kerosene

MANILA, September 23 ------ As fuel prices continue to rise amid the ongoing conflict in the Middle East, Finance Secretary Frederick Go announced that he has signed a resolution removing the excise tax on LPG and kerosene.

His announcement came during the Senate budget hearing for the Department of Finance, after Senator Bong Go reiterated his call to suspend fuel excise taxes amid the Middle East conflict. “Kanina lang po umabot sa akin, pinirmahan ko agad-agad,” the Finance Secretary said.

The DOF, however, said it will not remove the excise tax on diesel and gasoline, saying this would be “not progressive” and would result in a revenue loss of P12 billion per month. “Number one, if you remove taxes on diesel and gasoline, it will not be progressive. Ibig sabihin po nito, yung theory po na pinarating sa amin ng mga ekonomista ay ang mga mayayaman ang pinakamalakas gumamit ng diesel at gasolina,” Go explained. “At kung tinanggal po natin ang taxes sa lahat, ang mas makikinabang po dito ay mga mayayaman kasi sila po yung malakas gumamit ng diesel at gasolina,” he added.

The agency said it will instead provide targeted subsidies to vulnerable sectors as fuel prices continue to increase.

Source: news.abs-cbn.com