Manila, Philippines – President Ferdinand R. Marcos Jr. has signed the a law that gives him the power to reduce or suspend the excise tax on petroleum products.
The Republic Act No. 12316, it aims to address the impact of fluctuating petroleum product prices amid the ongoing tensions between the US, Israel and Iran.
The new law amends Section 148 of the National Internal Revenue Code of 1997, which authorizes immediate government action when the price of Dubai crude oil, based on the Mean of Platts Singapore (MOPS), reaches or exceeds Eighty US dollars (USD 80) per barrel of oil within a month.
According to the government, this is intended to reduce the impact of the increase in petroleum prices on the daily expenses of the citizens, especially in the most affected sectors.
The president also stressed that there is no need to panic because he said everything is being done to solve the problems facing the country.
He said the government does not control the price of oil in the world, but it is impossible for the public to feel the weight of the country’s problems.
That is why he said everything is being done to address the problems facing the country.
Meanwhile, the Development Budget Coordination Committee (DBCC) will have an important role in the implementation of the law, which will make recommendations to the President, in collaboration with the Department of Energy (DOE).
The temporary suspension or reduction of excise tax on crude oil will only last until December 31, 2028.
Following this, the Department of Finance (DOF) said that the executive order to reduce or suspend excise tax on oil will be effective on April 12 or 13.
He said 15 days of publication is required from the time it is signed by President Bongbong Marcos for emergency powers.
He added that the Development Budget Coordination Committee (DBCC) has not yet met regarding this.—Grachella Corazon, Eurotv News