- President Duterte suspended the imposition of the second round of the excise tax hike on fuel
- Budget Sec. Diokno said the suspension would result to a net loss of P26 billion if implemented for a whole year
- Senator Bam Aquino lauded President Duterte for the decision to heed his economic managers’ proposal
The second round of the imposition of oil excise tax hike on fuel scheduled early next year has been deferred after President Rodrigo Duterte approved the recommendation of his economic managers to suspend it.
Through a memorandum signed by Executive Secretary Salvador Medialdea, President Duterte notified his economic managers, including Finance Secretary Carlos Dominguez, Budget Secretary Benjamin Diokno and National Economic and Development Authority Secretary Ernesto Pernia, that their proposal to suspend the next scheduled increase in the fuel excise tax has been approved.
A copy of the memorandum was released to the media on Wednesday, November 14.
“With reference to your memorandum dated 11 October 2018, please be informed of the approval of your recommendation to suspend the next scheduled increase in the excise tax on fuel, subject to Section 43 of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion Law,” the memorandum read.
Secretary Diokno, who confirmed the receipt of the memorandum, told reporters that the planned suspension of the excise tax on fuel would result in a net loss of P26 billion if implemented for the whole year.
“That’s the maximum. It can be much lower than that, for example, after a quarter review we can take it back,” Diokno said.
Opposition Senator Bam Aquino lauded President Duterte and his economic managers for the temporary suspension of the excise tax increase on petroleum products.
“Ito’y tagumpay ng mga Pilipinong matagal nang humihiling ng tulong sa matinding pagtaas ng presyo. Nagpapasalamat tayo sa Presidente at sa kanyang economic managers sa pag-aksyon sa isyu na matagal nang daing ng mga pamilyang nahihirapan sa taas ng presyo ng bilihin,” Sen. Aquino said.
As per the Manila Times, the tax hikes under the Tax Reform for Acceleration and Inclusion Law were being blamed for the rising inflation.