National Economic and Development Authority (NEDA) Secretary Ernesto Pernia on Sunday confirmed the suspension of the P2 additional excise tax on diesel and gasoline that was to take effect January 2019 under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Earlier, Special Assistant to the President Christopher “Bong” Go said the government is considering suspending the excise tax on fuel to tame inflation.
President Rodrigo Duterte has signed an order suspending the second tranche of the excise tax “to arrest the rising price of oil and its effects on the inflation rate,” according to Go.
In a statement released to the media, he said, “Rest assured na binabantayan ng Pangulo ang presyo ng langis at iba pang commodities para ma-mitigate ang epekto ng inflation at maalagaan ang kalagayan ng mga Pilipino lalo na ang mga mahihirap (Rest assured that the President is closely watching prices of oil and other commodities to mitigate the effects of inflation and to address the needs of Filipinos especially the poor).”
The government imposed a P2.50 tax per liter of diesel and P1 on liquefied petroleum gas under the TRAIN’s first tranche of excise tax on fuel. The TRAIN law levies a total of P6 per liter on oil products, spread over three years starting 2018 up to 2020.