NextGen Day

In order to reduce the price of petrol and provide the Filipino people immediate relief, a congressman stated on Tuesday that the temporary provision addressing the automatic fuel tax reduction under the Tax Reform for Acceleration and Inclusion (TRAIN) law should be made permanent.

Rep. Luis Raymund Villafuerte of Camarines Sur said in a statement that the TRAIN law’s temporary power to suspend the fuel excise tax anytime the USD80 price threshold is exceeded expired in 2020.

According to Villafuerte, the proposed tax postponement is intended to protect common Filipinos from “additional hardships that may be brought on by unexpected economic downturns.”

According to Villafuerte, “geopolitical conflicts and other developments in the global markets have been driving up the cost of petroleum products, which, in turn, have jacked up transportation costs and food prices responsible for the inflation that now threatens to slow the global economy and possibly even cause a recession in most parts of the world.

He cited data from the Philippine Statistics Authority (PSA) showing that the rate of price increases for commodities exceeded the Bangko Sentral ng Pilipinas’ target range of 2 percent to 4 percent for the ninth consecutive month in 2022, reaching a 14-year high of 8.1 percent in December, the highest since the rate of 9.1 percent in 2008. (BSP).

He emphasized the need to find a “surefire way” to mitigate the financial effects of fluctuating fuel prices on everyday Filipino consumers, noting that the most practical way to do this is by permanently suspending the excise tax levied on petroleum products whenever the global rate reaches the TRAIN-set threshold of USD 80 per barrel over a three-month period.

Especially now that Filipinos are just beginning to recover from the nearly three-year global economic and health crises brought on by the Covid-19 pandemic, he said, “This is the best way for Malacaan Palace and the 19th Congress to take the edge off the economic shock inflicted on our consumers by the never-ending rise in the cost of living.”

According to him, the excise duty is now set at PHP10 for normal and unleaded premium gasoline and PHP6 for diesel per liter.

“Add to this the VAT (value added tax) of 12 percent, and anyone might see how taxes have led to the significant increase in the cost of other commodities that depend on fuel for their production and/or delivery, as well as the price of the fuel itself,” he stated.

He claimed that on Tuesday, the retail price of gasoline and diesel increased by PHP1.30 and PHP1 per liter, respectively. This is the third straight increase in pump prices this January.

A monitoring report from the Department of Energy (DOE) revealed that prices have already experienced net rises of PHP5.90 for gasoline and PHP2.05 for diesel per liter since the beginning of January.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---