PBBM suspends excise tax on LPG, kerosene for 3 months

MANILA, April 18 ------ President Ferdinand R. Marcos Jr. has ordered the three-month suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene to mitigate the impact of rising global oil prices.

Under Executive Order (EO) 114 signed by Marcos on April 16, the suspension of excise taxes on LPG and kerosene is subject to a monthly review. A copy of the EO was released. The order was issued after the Department of Energy (DOE) certified that the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) reached USD93.71 per barrel over the past 30 days, exceeding the USD80 threshold set under Republic Act (RA) 12316.

The Development Budget Coordination Committee (DBCC), recommended the full suspension of excise taxes on LPG, when used as raw material for petrochemical products or for motive power, and kerosene, except when used as aviation fuel. “The suspension shall be subject to monthly review by the DBCC, which shall recommend to the President the continuation, modification, extension, or termination thereof,” the order read.

EO 114 provides for the automatic reversion of excise tax rates, a week after the one-month average Dubai crude oil price based on MOPS falls below USD80 per barrel, as certified by the DOE, or upon the expiration of the suspension period. The DOE and the Department of Finance, through the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), are directed to conduct an inventory of existing stocks of LPG and kerosene and ensure compliance with the latest directive.

Oil companies are required to submit regular data on cost components of LPG and kerosene on a monthly basis. The BIR and the BOC are mandated to submit to Congress monthly information on the declared value and volume of the petroleum products. EO 114 takes effect immediately upon its publication in the Official Gazette or a newspaper of general circulation.

Source: pna.gov.ph