SENATOR Grace Poe is set to refile her bill seeking to temporarily halt the excise tax collection on oil products to cushion the blow of the price surges on the Filipino people.

Poe’s bill proposes to amend Section 148 of the National Internal Revenue Code to provide for the automatic suspension of the excise tax on regular gasoline, unleaded premium gasoline, and diesel when the average Dubai crude oil based on the Mean of Platts Singapore for three months before the scheduled increase of the month reaches or exceeds US$80 per barrel.

Poe said suspending oil excise taxes will bring “instant relief” to the public as it will lower the prices of fuel products, resulting in the reduction of costs of goods and services.

“To our people in daily survival mode, the oil tax reprieve will provide a crucial lifeline,” Poe explained.

“The revenues the government will generate from the excise tax to fund cash aid might come too late for families who have nothing to eat now,” Poe stressed, “As the saying points out, ‘Aanhin pa ang damo, kung patay na ang kabayo.’”

The senator said the bill will be among the pieces of legislation she will file when the 19th Congress convenes in July.

Local taxes add substantial costs to the already high fuel prices in the world market.

Pursuant to the Tax Reform for Acceleration and Inclusion (TRAIN) Law, the excise tax on regular and unleaded premium gasoline is currently set at P10 per liter of volume capacity.

The excise tax on diesel is pegged at P6 per liter.

A value-added tax of 12% is also imposed on the sale of gasoline and diesel.

The suspension of the excise tax will immediately bring down costs by P10 per liter for gasoline and P6 per liter for diesel.

The authority granted under the TRAIN law to suspend excise tax collection was transitory and covered only the years 2018 to 2020.

Meantime, oil companies announced another round of increases effective June 21, 2022, which could bring local fuel prices to P100 per liter.

“If the government is willing to spend billions in cash assistance to targeted beneficiaries, then it should also be ready to forego a portion of its revenues during the most critical times in order to save millions of lives,” Poe emphasized.

“We hope that this call on excise tax suspension, which is becoming louder by the day, will merit serious consideration from the incoming administration,” the senator said.

To help ease the impact of oil prices, Poe earlier urged government agencies to effectively implement a Civil Service Commission (CSC) resolution allowing a “flexible work arrangement” for government employees without sacrificing prompt and quality public service.