Congressmen听are pushing a tax credit scheme to allow immediate fuel price cuts, challenging the Department of Finance鈥檚 (DoF) position that suspending excise taxes may only apply to future imports.听
Marikina Rep. Romero Federico 鈥淢iro鈥 S. Quimbo, who heads the ways and means committee,听said the government should听ensure the public feels the relief听鈥渞ight away.鈥澨
He proposed听at a听House of Representatives听hearing on Monday听that fuel companies be granted tax credits for excise taxes already paid on existing inventories so they could听cut pump prices without waiting for new shipments.听
He estimated听potential reductions of about P10 per liter for gasoline, P6 for diesel听and P4.50 for kerosene as early as the day after a presidential directive.听
The proposal runs counter to the听DoF鈥檚听position that applying tax relief to fuel already in the country would be difficult.听
鈥淚t will be hard with regard to administrative听feasibility, the removal of the excise stocks, the inventories that are here in the Philippines,鈥 Finance Undersecretary Rolando T. Ligon, Jr. told听the hearing.听The direction听they听are looking at is to apply it to听鈥渦pcoming importations.鈥澨
Mr. Ligon said implementing tax relief on fuel already in storage poses technical and administrative challenges, citing the complexity of adjusting taxes on existing inventories.听
He said once a directive is signed, implementation could take effect within one to two days through issuances from the Bureau of Customs.听
President Ferdinand R. Marcos,听Jr. has听yet听to decide whether to halt or cut fuel excise taxes under a law that empowers him to do so.听
Mr. Quimbo also asked the听DoF听to explain why听a听tax听credit scheme听would be unworkable, noting that the Bureau of Customs听maintains听records of inventory and tax payments.听
Discussions on fuel tax measures come as volatility persists in global oil markets amid tensions linked to the Strait of Hormuz听and the US-Israel war on Iran.听
Energy Undersecretary Alessandro O. Sales said diesel prices are expected to drop by P20 to P21 per liter on Tuesday due to market听movements, but听warned that conditions听remain听unstable.听
He听said prices could climb to P130听to听P170听a听liter if hostilities resume, while a longer-term resolution could bring diesel prices down to P75 to P90听a听liter over several months.听鈥斕Erika Mae P.听Sinaking听
