The law President Marcos Jr. signed on Wednesday granting him power to suspend oil excise taxes is not actual relief from runaway fuel prices, Bagong Alyansang Makabayan (BAYAN) clarified.
After Marcos made official Republic Act No. 12316 authorizing the Office of the President to suspend or reduce excise taxes on petroleum products, BAYAN president Renato Reyes Jr. said the signing is not the equivalent to an actual suspension of taxes.
“Marcos said earlier in his press conference that he is still looking for the right timing to use his emergency powers,” Reyes pointed out.
Under the measure, Marcos may act on the recommendation of the Development Budget Coordination Committee (DBCC) and in coordination with the Energy Secretary if the average Dubai crude oil price reaches or exceeds 80 US dollars per barrel for one month.
World crude prices have breached the threshold two weeks ago. On Wednesday, Brent crude is trading around US$112 per barrel, while U.S. West Texas Intermediate (WTI) crude is trading approximately in the US$88-94 per barrel range.
The law allows either a full suspension or partial reduction of excise taxes on specific petroleum products, effective for up to three months at a time, with extensions capped at one year.
Rates will automatically revert to normal once oil prices fall below 80 dollars per barrel or when the three month period lapses.
These emergency powers may only be exercised until December 31, 2028.
Marcos, however, earlier clarified he is still considering when to utilize his extra powers. If and when he does, this could mean a reduction of about ₱10 per litre for petrol and ₱6 per litre for diesel.
There is growing demand for the removal of value added tax as well, which could further reduce prices by as much as ₱15.
“That’s why these ‘emergency powers’ are just a show because they lack the urgency and necessity to completely remove the burdensome and oppressive taxes, VAT and excise tax. It will still rely on Marcos’ discretion as to when and how much the taxes will be reduced,” Reyes explained.
Reyes added today’s transport strike is important to compel Marcos to remove “burdensome” taxes on oil and to abolish the oil deregulation law. # (Raymund B. Villanueva)
