President Ferdinand Marcos Jr.’s suspension of excise taxes on select petroleum products is an attempt to trick Filipinos into thinking government is working to help the poor amid the war in West Asia.
IBON Foundation executive director Sonny Africa said government’s suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene is a “disingenuous” way to keep charging much bigger diesel/gasoline excise taxes on the poor.
“They argued that the excise taxes on diesel/gasoline weren’t removed because poor households don’t consume much of these – unlike LPG and kerosene. But they didn’t mention how most fuel is consumed by commercial users like trucking, inter-island shipping, and other transport services — so the fuel tax is passed on to the price of rice, vegetables, and fish, to jeepney and tricycle fares, and to other goods and services,” Africa in a social media post said.
The economist pointed out that diesel and gasoline account for 73% of the country’s petroleum product demand while , and LPG and kerosene for just 13%. He added that diesel is used commercially and not by the tiny handful of rich households with vehicles.
“The burden of fuel taxes isn’t from the poor buying fuel directly, but from how so much of what they buy – especially food – has oil taxes embedded in their price,” Africa said.
“The exception is of course transport workers who do buy diesel and gasoline, who directly pay these oil taxes, and who also buy food made more expensive by oil taxes,” he added.
Marcos on Monday said he is finally utilizing the emergency powers given him by Congress to suspend fuel excise taxes while global crude oil price is US$80 per barrel or beyond.
Capers in place of a simple announcement
Marcos meanwhile started his announcement with displays of physical prowess to disprove allegations of failing health. Marcos performed brief jumping jacks, ending the event with a jog to his office in another building within the palace compound.
Marcos asserted he is in good health and has recovered from diverticulitis, a health complaint associated with stress and old age. “I challenge anyone who is saying that I am sick that they come and exercise with me… Let’s see who among us could lift heavier weights,” he bragged.
He further clarified that he only takes medication for his gout and hypertension.
Social media in the Philippines lit up with suspicions of the president’s failing health last week, allegations shared widely by supporters of his bitter rival Vice President Sara Duterte.
The allegations said the president is suffering from Stage 4 cancer and had been hospitalized.
To disprove the claims, the president also released photos of him and the first lady having dinner in an expensive hotel and casino on Sunday.
“[E]verything they say is a lie. So don’t believe anything they say. Now you know who the liars are and who is telling the truth,” Marcos said.
Still under study
In his announcement, Marcos said his excise tax suspension will only apply to cooking gas and kerosene while tax deferrals on diesel and gasoline are still under study.
“We reduced the taxes on essential products that are directly used in everyday life. So, under the authority granted to us by law, I have removed the excise tax on LPG and kerosene. This is equivalent to P3.30, P3.36 reduction per kilo of LPG. That’s almost P37.00 less per tank,” he explained.
He further said that his government needs to income from taxes from diesel and gasoline to continue with government’s cash aid to transport workers.
Africa however said most drivers are not receiving fuel subsidies. “Some are, most aren’t – and while maybe 350,000-400,000 are ‘targeted’ to get a little aid helpful for a few days, around 1.8 million more won’t get anything at all,” Africa said.
“Oil excise tax collections are some Php400 billion annually, there’s a 100% chance that the transport sector or poor families won’t get Php400 billion in fuel subsidies,” he added. # (Raymund B. Villanueva)
