DOF, BIR issue guidelines on fuel tax suspension

The Department of Finance (DoF) and Bureau of Internal Revenue (BIR) have issued the implementing rules for the temporary suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene, as part of the government’s efforts to cushion consumers from rising fuel costs.

In a statement, the BIR said Revenue Regulations (RR) No. 3-2026, issued on 17 April, operationalizes Executive Order 114 signed by Ferdinand R. Marcos Jr. a day earlier, which suspends excise taxes on select petroleum products.

Under the rules, the bureau said the excise tax on LPG — except when used as a raw material for petrochemical production or for motive power — and on kerosene — except when used as aviation fuel — will be fully suspended starting 17 April.

In effect for three months

The tax relief will be in effect for three months, subject to a monthly review by the Development Budget Coordination Committee (DBCC), which will assess whether an extension is warranted based on prevailing market conditions.

The authority stems from Republic Act 12316, signed on 25 March, which declared a national state of “energy emergency” and granted the President emergency powers to suspend or reduce fuel excise taxes upon the recommendation of the DBCC, in coordination with the Department of Energy.

To ensure transparency and monitoring, the BIR and Bureau of Customs have been directed to submit monthly reports to Congress covering the volume and declared value of covered petroleum products. These will be based on import release documents, customs entries, and manufacturers’ official registry books.

Savings in LPG and kerosene

Finance Secretary Frederick Go said Filipinos could save around P36.96 per 11-kg cylinder of LPG and P5.56 per liter of kerosene.

He noted that 48 percent of total kerosene consumption is attributed to the bottom 30 percent of households, while roughly 55.7 percent of LPG users come from the bottom 70 percent.

However, Go clarified that the government will not suspend excise taxes on gasoline and diesel, citing minimal expected relief for consumers.

Meanwhile, Finance Undersecretary Karlo Fermin Adriano said in a Palace briefing on Tuesday that the government stands to lose about P4.1 billion following the decision to suspend excise taxes on LPG and kerosene for three months.