NextGen Day

MANILA, Philippines — President Rodrigo Duterte has agreed to the Department of Finance’s suggestion that excise taxes on petroleum goods be collected indefinitely.

This comes as Finance Secretary Carlos Dominguez III cautioned that postponing the collection of fuel excise duties will result in a reduction of PHP105.9 billion in overall government revenues in 2022.

Duterte said he arranged a series of meetings with Cabinet secretaries because his choice will be based on their suggestions in a prerecorded Talk to the People broadcast Wednesday morning.

“The Cabinet members aren’t appointed for no reason.” Sila ‘yung magtrabaho at ako (They will execute the job, and I will make the final decision after reviewing the reports). “I’m here to speak to the people,” Duterte declared during a meeting with Cabinet officials at Malacaan Palace on Tuesday night.

Due to potential income losses, Dominguez reminded Duterte that the proposed suspension of excise duties on fuel goods would cause the government to “borrow additional money.”

“That rises to PHP114.4 billion in 2023, PHP123.6 billion in 2024, and so on.” For a 10-year average of PHP160.3 billion per year, or PHP1.76 trillion in total. “This is almost a half-percentage point of our GDP (gross domestic product),” Dominguez told Duterte.

According to Dominguez, the measure would primarily benefit the wealthy.

“Only 13 percent of the fuel is consumed by the Philippines’ lowest half. As a result, lowering the tax will mostly benefit automobile owners and other wealthy individuals. “We won’t be benefiting the lower half of our population as much, which will make it incredibly inequitable,” he remarked.

Instead, Dominguez proposed providing PHP200 monthly subsidies to about 12 million underprivileged Filipinos for a year.

“To summarize, keep the fuel excise taxes imposed under the TRAIN (Tax Reform for Acceleration and Inclusion) Law in place [and] provide targeted subsidies to the Philippines’ lowest 50% of households, which number roughly 12 million people.” “For the first year, this will cost PHP33.1 [billion],” he stated.

Dominguez claims that his office’s approach is “sustainable” and “affordable at this moment.”

Dominguez’s recommendation was approved by Duterte.

“So sige, ‘yun ang policy ng executive department (well, that’s the executive department’s policy),” Duterte stated.

Acting Presidential Spokesperson and Communications Secretary Martin Andanar said the Department of Budget and Management would provide instructions on the distribution of supplemental help to poor Filipinos in a separate online press briefing on Wednesday.

“Unawain natin na hindi lahat ay mabibigyan,” says the speaker. The most vulnerable sector is unahin natin. Ang mga mahihirap nating kababayan at minimum wage earners are the most vulnerable and affected. (Please note that not all Filipinos will receive aid.) The most vulnerable sector will be given top priority. The poor and minimum wage earners are the most susceptible and affected),” Andanar remarked.

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