The House of Representatives approved on second reading Wednesday a measure that would authorize President Ferdinand Marcos Jr. to temporarily suspend or reduce excise taxes on fuel during economic emergencies and global price shocks.

House Bill No. 8418 seeks to amend the National Internal Revenue Code of 1997, allowing the executive branch to bypass the lengthy legislative process to provide immediate relief when international disruptions drive up domestic costs for transport, food, and household expenses.

House Majority Leader Ferdinand Alexander “Sandro” Marcos, a primary author of the bill, said the legislation is designed for speed and precision. He stressed that the bill provides the President with a measured tool to cushion economic shocks with clear triggers and limits, serving as protection for citizens against sudden spikes in the prices of basic commodities.

Under the bill, the president may exercise this authority only upon the recommendation of the Development Budget Coordination Committee and if specific economic conditions are met.

The first trigger involves a global price spike where the price of Dubai crude oil reaches or exceeds $80 per barrel for one month prior to the order. The second trigger allows for action during a declared state of emergency or calamity that results in extraordinary domestic pump price increases, as certified by the Energy secretary.

The measure includes several fiscal safeguards to protect the national budget. Any suspension or reduction is limited to a maximum of six months, with an aggregate cap of one year. Furthermore, the excise taxes would automatically reinstate once the emergency conditions subside without requiring further government action.

Representative Miro Quimbo, chairman of the House Committee on Ways and Means, defended the bill on the floor, emphasizing that the authority is not open-ended. The executive branch would be required to report to Congress within 15 days of issuing an order, detailing the factual basis for the move and the estimated impact on government revenue and inflation.