Manila: Speaker Faustino 'Bojie' Dy III and House Majority Leader Ferdinand Alexander 'Sandro' Marcos of Ilocos Norte have filed a bill granting President Ferdinand R. Marcos Jr. the authority to suspend or reduce excise taxes on petroleum products during national or global economic emergencies. The initiative aims to alleviate the impact of rising fuel prices on Filipinos.
According to Philippines News Agency, House Bill No. 8292 proposes amendments to the National Internal Revenue Code, enabling the President, with recommendations from the Secretary of Finance and in coordination with the Secretary of Energy, to temporarily suspend or reduce excise taxes on fuel. This measure would be enacted when extraordinary conditions cause global oil prices to surge.
The bill stipulates that the President can suspend or reduce excise taxes if the average Dubai crude oil price hits at least USD80 per barrel for three consecutive months, or if a national emergency results in significant domestic pump price increases. This suspension could apply to specific petroleum products and remain effective for up to six months, with possible extensions by Congress not exceeding a total of one year.
Additionally, the President must report to Congress within 15 days of the suspension order, and continue monthly reporting, detailing the order's basis, estimated revenue losses, and anticipated effects on fuel prices and inflation.
The proposal emerges amid heightened global oil market volatility due to geopolitical tensions in the Middle East, which threaten to disrupt supply and elevate fuel prices. Dy and Marcos emphasized the vulnerability of the Philippine economy to such fluctuations, underscored by tensions involving the United States, Israel, and Iran.
Given that the Philippines imports nearly 90 percent of its petroleum from the Middle East, regional geopolitical tensions could quickly inflate domestic fuel prices, fuel inflation, and diminish consumers' purchasing power. The leaders highlighted the disproportionate burden rising fuel prices place on vulnerable sectors such as farmers, fisherfolk, public transport operators, small businesses, and low-income households.
The House leaders stressed the need for the government to act swiftly during national emergencies or sudden global disruptions to mitigate these shocks and protect the welfare of Filipinos. The proposed measure would equip the government with a flexible policy tool to stabilize prices amid severe volatility.
They concluded that by implementing a targeted and time-bound policy mechanism, the government could swiftly respond to extraordinary fuel price volatility, relieve consumer burdens, and stabilize domestic prices during periods of severe economic disruption.
