DOF warns Marcos admin against suspending fuel excise tax

6/16/2022 1:00:00 PM

The Department of Finance cautioned the incoming administration of President-elect Ferdinand Marcos Jr. against suspending the collection of excise tax on petroleum products as it suggested alternative ways to mitigate the impact of fuel price hikes.

Fuel Excise Tax, Department Of Finance

The Department of Finance cautioned the incoming administration of President-elect Ferdinand Marcos Jr. against suspending the collection of excise tax on petroleum products as it suggested alternative ways to mitigate the impact of fuel price hikes.

The Department of Finance (DOF) on Thursday cautioned the incoming administration of President-elect Ferdinand Marcos Jr. against suspending the collection of excise tax on petroleum products as it suggested alternative ways to mitigate the impact of fuel price hikes.

The DOF, however, claims that suspending taxes on fuel products is "not the most efficient approach to alleviating the conditions of affected sectors.”Malacañang also maintained that the collection of excise tax on oilcannot be suspendeddespite rising oil prices, as the tax will fund government programs.

According to the Finance Department, the suspension of the fuel excise tax will reduce government revenues by P105.9 billion, or 0.5% of GDP, in 2022, resulting in a higher deficit and government debt.“An increase in deficit and debt, in turn, will potentially raise interest rates on government debt, thereby reducing much-needed fiscal space for funding crucial social and economic programs, more so now when the government needs to sustain and even boost the domestic economy’s recovery from the lingering pandemic and Russia-Ukraine conflict,” the DOF said.

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Suspension of fuel taxes possibleIf the radical spikes in oil prices will linger in the months ahead, the suspension of excise taxes and possibly even value added tax (VAT) will be on the table as an agenda of the Marcos administration. Tax is the first thing that should go

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Several lawmakers and transport groups have been calling for the suspension of the excise tax on fuel to ease the impact of skyrocketing petroleum prices brought about by supply disruptions in the global market amid the Russia-Ukraine war.By TED CORDERO, GMA News Published June 15, 2022 1:30pm President-elect Ferdinand "Bongbong" Marcos Jr.Historians step up fight as Marcos returns to Palace June 16, 2022 | 12:32 am A woman reads a book on martial law under the late dictator Ferdinand Marcos, at the Bantayog ng mga Bayani, in Quezon City, Philippines, May 21, 2022.By TED CORDERO, GMA News Published June 15, 2022 1:30pm President-elect Ferdinand "Bongbong" Marcos Jr.

The DOF, however, claims that suspending taxes on fuel products is "not the most efficient approach to alleviating the conditions of affected sectors.” Malacañang also maintained that the collection of excise tax on oil cannot be suspended despite rising oil prices, as the tax will fund government programs. In an interview on GMA News’ Unang Balita on Wednesday, Balisacan said that Marcos’ economic team is already crafting a plan for “next year, next three years, and for the duration of the administration. According to the Finance Department, the suspension of the fuel excise tax will reduce government revenues by P105. “Three days after the election, I rushed to buy the book The Conjugal Dictatorship of Ferdinand and Imelda Marcos because I was afraid that it might get banned by the incoming government,” the construction worker said in a Facebook Messenger chat.9 billion, or 0. “Ang unang una na priority ng administrasyon ay mapabalik, mapalago ulit ang ekonomiya at makapag-recover fast from the impact of the pandemic,” said Balisacan, the incoming National Economic and Development Authority chief.5% of GDP, in 2022, resulting in a higher deficit and government debt. (The first priority of the administration is to revive the economy and recover quickly from the impact of the pandemic.

“An increase in deficit and debt, in turn, will potentially raise interest rates on government debt, thereby reducing much-needed fiscal space for funding crucial social and economic programs, more so now when the government needs to sustain and even boost the domestic economy’s recovery from the lingering pandemic and Russia-Ukraine conflict,” the DOF said.) “Si presidente [Marcos] marami na ring mga utos lalo na ‘yung pag-address sa mga problema natin ngayon nasa kalagitnaan tayo ng krisis sa mundo lalo na ang pagtaas ng mga presyo at meron pang ongoing uncertainty sa COVID-19 so malaki ‘yung challenges natin,” he added. “The collaboration between the academe, civil society organizations and the media is very important in these times,” said Ian Jason Hecita, who teaches political science at De La Salle University. The agency earlier said that the government’s running debt stock would have ballooned to P15.4 trillion , or P2. The challenges are enormous.2 trillion more than the projected P13. Hecita said.2 trillion by the end of 2022 had the Duterte administration yielded to legislators’ pressure to pass all pandemic relief measures and suspend the fuel excise tax. The rise in fuel and transport costs caused inflation to accelerate to 5. The rise in fuel and transport costs caused inflation to accelerate to 5.

  The current excise tax rates for the major petroleum products are as follows: P10 per liter for gasoline, P6 per liter for diesel, P5 per liter for kerosene, and P3 per liter for LPG. “The suspension of the imposition of excise taxes on petroleum is also extremely regressive and primarily benefits higher-income households,” the DOF said. The increase in transport costs due to the continued rise in petroleum prices had a spillover effect on the food basket. His father on Sept. “We will just be subsidizing the top 10% of Filipino households who consume about 50% of total fuel consumption in 2022. This means that the larger financial benefits of the suspension will not go to the poor, but to higher income households,” it said. He also said the economic team will carefully study the fiscal consolidation plan proposed by the outgoing Duterte administration. The Finance Department noted that “[t]he better and more equitable way to address the impact of the increasing fuel prices is to provide swift and targeted support to the vulnerable sectors. More than 70,000 people were jailed, about 34,000 were tortured and more than 3,000 people died under martial rule, according to Amnesty International. The Department of Finance recently unveiled a fiscal consolidation plan aimed at raising an average of P284 billion annually for the next 10 years to pay off the P3.

” The Duterte administration opted to release cash subsidies for the public transport and the agriculture sectors amounting to P5 billion and P1.2 trillion in additional debt incurred due to the pandemic.1 billion, respectively. Latest data available from the Department of Energy showed that year-to-date adjustments stand at a net increase of P26. “‘Yun naman ay pag-aaralan naming mabuti to make sure na itong fiscal consolidation ay hindi maapektuhan or ‘yung burden of adjustment ay hindi sa mahihirap na nangangailangan ng tulong,” Balisacan said. Civic groups have said the truth about Martial Law is at risk of being further buried after Mr.55 per liter for gasoline, P36.85 per liter for diesel, and P33.) He said that whether or not taxes will be raised or new taxes will be imposed is not certain at this time.) He said that whether or not taxes will be raised or new taxes will be imposed is not certain at this time.

10 per liter for kerosene as of June 7. An o ffi cial Presidential Palace website that stores historical records of Mr. Meanwhile, fuel prices in several provinces in the country hit P90 to P100 after oil firms implemented another hike in pump prices this week. Balisacan added that the option of suspending fuel taxes would be carefully examined because it would result in decreased government revenues. The DOF also thumbed down a proposal by Energy Regulatory Commission (ERC) Chairperson Agnes Devanadera to remove the 12% value-added tax (VAT) on the generation charge to reduce electricity costs for consumers. “VAT exemption is not the solution. (What we want to do is to address the problem of high prices and, at the same time, not compromise our plans to revive the economy and help sectors in need, such as health, education, and social protection. “Our minds were poisoned for a long time by textbooks about the history of the Marcoses,” Jay-ar Castillo Dinglasan, one of the book’s sellers, said in a Facebook post. If the intention is to unburden consumers, the next administration needs to review the existing policies on power generation pricing,” said outgoing Finance Secretary Carlos Dominguez III.) — VBL, GMA News.

“We cannot afford to give another VAT exemption as this leads to distortionary and less equitable tax systems,” he said, adding that “VAT exemption creates discrimination among similar businesses. Thus, it should remain broad-based and allow for few exemptions. Cornelio, director of the Development Studies Program at the Ateneo de Manila University.” Dominguez said that there is no double taxation in the electric power industry as the EPIRA, or Electric Power Industry Reform Law, has unbundled the pricing at each stage of electricity production. The VAT is imposed separately on each stage of production. — VBL, GMA News .’s victory will not erase our collective memory.