The two-week conditional ceasefire between US, Israel and Iran may develop into a more permanent cessation of hostilities between the main combatants, putting an end to one of the worst energy and economic crisis in many decades deeply affecting the Philippines.
While the precarious ceasefire is generally welcomed by the rest of the world, the agreement may turn off the taps from a proven Philippine government fund generator: fuel taxes.
Unlike neighboring countries such as Indonesia and Vietnam that cut back on taxes to protect their citizens from runaway inflation as the war in West Asia raged, President Ferdinand Marcos Jr. obstinately refused to suspend excise and value added taxes on fuel despite Congress giving him emergency powers to do so.
In the five weeks since shooting started last February 28, the Philippine government is set to collect P47.6 billion in fuel taxes. Even if fulfills its promise to give public transportation drivers cash aids worth P33.77 billion, it would still benefit from a P13.85 billion windfall.
Last March, Marcos promised ₱5,000 cash assistance to tricycle, jeepney, delivery and bus drivers. It had begun a partial roll out in major cities in the country, forcing several local governments to declare a state of emergency to hasten the distribution of cash assistance using their own emergency funds.
The target beneficiaries pointed out, however, that the amount is insufficient and palliative as it is only worth two days of fuel expenses. Transport organizations like Piston, along with many organizations said a more inclusive response should have been the suspension of taxes on fuel, one that would benefit every Filipino by ensuring lower prices across the board. Removing both taxes could reduce diesel prices by over P24 per litre and gasoline by over P10 per liter.
George, a tricycle driver, had stopped plying his route since petrol in his home province of Isabela hit P102 per litre (Dh6.33). His vehicle consumes one litre from his village to the town market 12 kilometres away. “Loaded with three passengers I could only charge P50 each, I would get P150 to pay for petrol and parts. Even if I’m lucky to get four full trips per day, I often come home with just P100 per day,” the young father of two said.
George has not received the cash aid Marcos promised. He is now selling watermelons by the side of the road, hoping to bring home a bit more cash.
Marcos was obviously thinking of lost revenue if fuel taxes are suspended. He justified his refusal to suspend taxes: “We just have to look. It’s very hard to say because it’s all speculation. We don’t know how long this will last for.”
What the president said means nothing to George and his market going passengers who watched helplessly as prices shot up. The country suffered a 4.1 per cent inflation rate in March, well above the targeted 2.4 per cent for the time period.
As government financial managers issue glowing 1st quarter income reports, the people’s suffering is buried beneath digits and fake assurances that all is well in the Philippines amid the war. # (Raymund B. Villanueva)
