Manila: Sen. Francis Pangilinan has introduced a legislative measure that would grant the President the authority to temporarily suspend excise taxes on petroleum products amidst global crises. Senate Bill No. 1940, presented on Monday, seeks to empower the President to either suspend or reduce fuel excise taxes during significant national or global economic emergencies.

According to Philippines News Agency, the proposed legislation aims to amend Section 148 of the National Internal Revenue Code of 1997. Currently, the recommendation for suspending excise taxes relies on the Development Budget Coordination Committee (DBCC) in consultation with the Department of Finance. In a news release on Tuesday, Pangilinan underscored the necessity of suspending excise taxes on petroleum products during 'extraordinary events,' noting that the increase in global oil prices directly impacts consumers.

Pangilinan stated that such a measure would provide timely relief, alleviate inflationary pressures, and reduce financial burdens on Filipino consumers, including farmers, fisherfolk, transport workers, and small businesses. He emphasized that granting the President ongoing authority to adjust fuel excise taxes in extraordinary circumstances would facilitate a swift policy response to exceptional oil price volatility and mitigate its effects on Filipino consumers.

The bill proposes allowing the President to temporarily reduce or suspend fuel excise taxes following the DBCC's recommendation and in consultation with the Department of Energy. Additionally, Sen. Francis Escudero has filed a similar bill to urgently authorize the President to adjust taxes on petroleum products during global oil supply disruptions caused by external shocks.

Senate Bill No. 1938, also filed on Monday, would empower the President to reduce excise and value-added taxes on petroleum products when global oil prices surpass certain thresholds due to various factors. The measure stipulates that such powers would take effect once the average Dubai crude oil price exceeds USD80 per barrel for a month.

The bill introduces a 'flexibility clause,' allowing the President to implement oil tax cuts even before reaching the specified price threshold. This provision would activate during extraordinary supply disruptions, geopolitical crises, or force majeure events, once certified by the Energy Secretary.