PASAHERO Party List joins growing clamor for fuel excise tax suspension
THE PASAHERO Partylist has joined the growing calls for the suspension of excise tax on fuel products as oil prices continue to soar against the backdrop of the COVID-19 pandemic.
The partylist group representing millions of Filipino commuters and passengers said the proposed suspension could provide relief not only to motorists, but also the general public.
“Suspending the imposition of fuel excise tax will help Filipino families recover from the hardships of the pandemic,” said lawyer Homer Alinsug, spokesperson of PASAHERO Partylist.
Alinsug warned that the continuous upward trend in fuel prices has burned a hole in people’s pockets apart from shooting up input cost on agriculture and industrial sectors.
“Prices of other essential commodities also increase with rise in fuel prices, and this expenditure disturbs the overall budget of Filipino families who are still reeling from the adverse impacts of COVID-19,” Alinsug pointed out.
However, Alinsug said that for the fuel excise tax suspension to materialize, there needs to be an amendment of Section 43 of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law that increased the excise tax on petroleum products in three tranches from 2018 to 2020.
Section 43 provides that the suspension was only allowed between 2018 and 2020 should the crude oil prices back then breach the $80 per barrel price in three months.
To cure this, Alinsug said the period from 2018 to 2020 may be amended to say 2018 to 2028 in order to provide legal basis in case of such increase in oil prices beyond the trigger amount until 2028, which should be enough period for Filipinos to prepare for such eventuality or recover from the current pandemic.
He added that the suspension should still be limited to three months.
“The suspension should only be for a limited time in order to balance the ill-effects of prolonged revenue losses on the part of the government which in turn will negatively affect its ability to fund government projects or activities ie address COVID-19 or other pandemic,” he stressed.
PASAHERO, also known as the Passengers and Riders Organization Inc., is a party-list group representing Filipino commuters and passengers. The Commission on Elections recently declared the group as a party-list candidate eligible to participate in the May 2022 general elections.
