Senate President Pro Tempore Panfilo Lacson called Sunday for decisive and “extreme” government intervention to shield Filipinos from surging fuel prices, while warning that a proposed suspension of the value-added tax (VAT) could cost the treasury more than P320 billion.
In a radio interview, Lacson said the government should utilize existing laws to address the energy crisis, including the potential temporary takeover or tighter regulation of energy-related industries if abuses are detected.
“These are extreme measures, but the government needs to stay on its toes to monitor,” Lacson said. “If there is abuse in the sector, the government must be ready to step in as a warning.”
The senator cited Republic Act 8479, which allows the Department of Energy to temporarily direct oil industry operations during a national emergency. He cited similar powers exist under Republic Act 12120 for the natural gas sector and Republic Act 9511, which permits the president to take over power transmission in the interest of public welfare.
Lacson criticized the lack of transparency regarding sanctions for retailers accused of unauthorized price hikes. He also flagged significant bureaucratic delays in implementing relief measures under Republic Act 12316, which governs the suspension of fuel excise taxes.
Because the law requires a one-month monitoring period starting 12 April, Lacson estimated that a recommendation for suspension might not come until 12 May.
“With the slow bureaucracy, it may take until June for us to feel the relief from the suspension of the excise tax, if at all,” he said.
While acknowledging public calls to suspend VAT on petroleum products, Lacson urged caution. He explained that while suspending excise taxes alone could result in P200 billion in foregone revenues by 2027, adding a VAT suspension would push total losses beyond P320 billion.
“It is not that simple,” Lacson said. “Some calls for suspending the VAT may sound good to the people, but its impact on our economy is huge. We may suffer in the long- or medium-term.”
The senator urged the government to instead maximize approximately P230 billion in available funds from the 2025 and 2026 national budgets and stressed that this aid should be distributed to transport workers and commuters through a data-driven system to ensure it reaches those most in need without political influence.