The Oil Industry Management Bureau (OIMB) of the Department of Energy (DoE) on Thursday warned of keeping a close eye on retail fuel outlets, particularly those already implementing the second tranche of excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
“We are ensuring that our consumers do not become subjects of profiteering. We are issuing show-cause orders (SCOs) to the concerned retail outlets for them to explain their implementation of the second tranche of excise taxes. In addition, we are also validating the prices of their fuel products to check whether they have already imposed the second wave of excise taxes.” Energy Secretary Alfonso Cusi said.
On Thursday, teams from DoE-OIMB visited various retail outlets in Caloocan, Quezon City and Malabon to serve the SCOs and validate retailer documents and the imposition of excise tax and the corresponding additional value added tax.
To date, the DOE-OIMB has already received 444 reports from retail stations implementing the second tranche of excise tax.
The DoE told retailers they can only impose the new excise tax rates upon the exhaustion of 2018 inventories. Only new inventories in 2019, directly imported or locally produced by refineries, are covered by the second tranche of excise tax.
The DoE emphasized that inventory levels vary, depending on the status of individual depots and retail outlets, and product turnover (i.e, diesel, gasoline, kerosene, and liquefied petroleum gas).
The DoE supports the tax law since its wisdom is anchored on the national vision for progress, Ambisyon Natin 2040.
Cusi said, “The funds raised from the collection will be invested on people through key infrastructure projects, intensified social development and other priority projects of the government.”
“I hope every Filipino supports the government’s cause. Also, let us remain vigilant and work together for utmost consumer welfare promotion,” he said.