DOF: Suspension of excise tax projects a P43.6 billion loss

Department of Finance (DOF) Undersecretary Karlo Fermin Adriano said that a revenue loss of P43.6 billion is projected if the suspension of excise tax on petroleum is imposed, in a press briefing on 14 April.

Adriano asserted that the suspension of excise tax on liquefied petroleum gas (LPG), kerosene, diesel, and gasoline would result in significant government revenue losses over a span of three months, amounting to P43.6 billion.

The official also said that even if government revenues from value-added tax (VAT) reach around P13 billion to P14 billion, the suspension of excise tax on petroleum products would still result in approximately P30 billion in revenue losses.

Department of Energy (DOE) Secretary Sharon Garin supported Adriano’s statement, comparing the income of an individual earning P100,000 and P1,000, saying that the suspension of excise tax would affect them in significantly different ways.

Adriano also said that the directive is to provide targeted subsidies to sectors that need them most, such as the P10 fuel subsidy for public transport drivers, including jeepney drivers and PUV operators who rely on fuel to earn a living.