The Philippine government may lose more than P700 million in monthly collections after President Ferdinand "Bongbong" Marcos Jr. ordered the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene, the Bureau of Customs (BOC) said on Sunday.
EO 125 freezes fuel taxes
Marcos issued Executive Order No. 125 on Friday, fully suspending the excise taxes on LPG — except when used as raw material for petrochemical products or motive power — and on kerosene, except when used as aviation fuel.
The move comes amid high international crude oil prices. The TRAIN Law (Republic Act 10963) had set excise taxes at P3.00 per kilogram for LPG and P5.00 per liter for kerosene.
A familiar cost
BOC Commissioner Ariel Nepomuceno, in an interview with Super Radyo dzBB, noted that almost P3 billion in collections were lost when excise taxes on the same fuels were removed from April to July this year.
"More than P700 million could be lost monthly," Nepomuceno said, adding that the bureau understands these are extraordinary times and the government needs to support struggling citizens.
To compensate, the BOC said it will tighten its assessment of imported items. Nepomuceno pointed out that the agency recently posted its highest-ever January-to-August collection of P664.776 billion, topping its P659.309-billion target by P5.467 billion, and expects stricter enforcement to keep revenues steady.
Sources:
GMA News Online: BOC: Over P700-M monthly losses expected after suspension of excise taxes on LPG, kerosene — https://www.gmanetwork.com/news/mon...ension-of-excise-taxes-on-lpg-kerosene/story/
EO 125 freezes fuel taxes
Marcos issued Executive Order No. 125 on Friday, fully suspending the excise taxes on LPG — except when used as raw material for petrochemical products or motive power — and on kerosene, except when used as aviation fuel.
The move comes amid high international crude oil prices. The TRAIN Law (Republic Act 10963) had set excise taxes at P3.00 per kilogram for LPG and P5.00 per liter for kerosene.
A familiar cost
BOC Commissioner Ariel Nepomuceno, in an interview with Super Radyo dzBB, noted that almost P3 billion in collections were lost when excise taxes on the same fuels were removed from April to July this year.
"More than P700 million could be lost monthly," Nepomuceno said, adding that the bureau understands these are extraordinary times and the government needs to support struggling citizens.
To compensate, the BOC said it will tighten its assessment of imported items. Nepomuceno pointed out that the agency recently posted its highest-ever January-to-August collection of P664.776 billion, topping its P659.309-billion target by P5.467 billion, and expects stricter enforcement to keep revenues steady.
Sources:
GMA News Online: BOC: Over P700-M monthly losses expected after suspension of excise taxes on LPG, kerosene — https://www.gmanetwork.com/news/mon...ension-of-excise-taxes-on-lpg-kerosene/story/
