Duterte will ‘definitely’ order oil excise tax suspension

MANILAMalacaAang on Monday confirmed that President Rodrigo R. Duterte will soon order the temporary suspension of the second tranche of excise tax on fuel, but has yet to decide whether it will heed a senator's suggestion to suspend it "now or sooner."

Definitely, there is a decision (to suspend excise tax on oil). It was even the President who made that announcement, Presidential Spokesperson Salvador Panelo said in a Palace briefing.

Panelo said that there will soon be proper documents that will be issued on the suspension.

There will be a paper documenting that. Antayin natin 'yan, Panelo said.

Yes, the fact that they made the announcement for that is a validation, he added.

Panelo made this remark after the Department of Finance (DOF), on Sunday, said that current price and multiple estimates of crude prices over the next two months show that the average price will stay above the USD80 threshold.

Under the Tax Reform for Acceleration and Inclusion (TRAIN) law, suspension of excise tax levied on petroleum products may be suspended in 2019 if global crude prices average USD80 per barrel for three consecutive months.

Special Assistant to the President Christopher Bong Go also announced that the government is open to suspending excise tax on fuel.

He issued the clarification after he was quoted in an earlier interview on the same day that the President has signed an order suspending the second tranche of the excise tax.

Duterte first mentioned that he was considering suspending oil excise tax to ease inflation in a press conference with reporters on October 9.

Panelo said whether oil prices in the world market breaches USD80 per barrel or not, the government was still set on pushing through with the suspension.

If I'm not mistaken, I just watched (Socioeconomic Planning) Secretary Pernia, kahit na hindi ma-reach matutuloy (and he said even if it does not breach, it will push through), Panelo said.

Panelo, however, said he would have to ask the President if he was amenable to the proposal of Senator Grace Poe to suspend excise tax now or sooner and not the second tranche in January 2019.

Di pa natin alam (We don't know yet). Let's see. I will ask the President on that, Panelo said. (PNA)

Source: Philippine News Agency