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Friday, March 29, 2024

444 gas stations start collecting higher tax

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The Department of Energy said 444 retail stations began implementing higher excise tax on petroleum products in compliance with the second tranche of excise tax under the Tax Reform for Acceleration and Inclusion law.

Data from the Oil Industry Management Bureau showed that 369 outlets of Petron Corp., 46 of Pilipinas Shell Petroleum Corp. and 29 of Flying V implemented the higher excise tax ahead of the February 2019 schedule expected by the department.

“We are ensuring that our consumers do not become subjects of profiteering. We are issuing show-cause orders to the concerned retail outlets for them to explain their implementation of the second tranche of excise taxes,” Energy Secretary Alfonso Cusi said in a statement.

Two teams from DOE-OIMB visited various retail outlets in Caloocan, Quezon City and Malabon on Thursday to serve the SCOs and validate their documents relative to the imposition of excise tax and its corresponding additional Value Added Tax.

Under the second tranche of Train law’s implementation, an additional excise tax of P2 will be imposed per liter on diesel and gasoline and P1 per kilogram on cooking gas or LPG (excluding value added tax).

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“In addition, we are also validating the prices of their fuel products whether they have already imposed the second wave of excise taxes,” Cusi said.

Energy officials previously said they were expecting the entire 8,006 retail stations to implement the additional excise tax by February at the latest.

The DOE-OIMB said that a retail outlet’s imposition of excise tax would depend on the exhaustion of the 2018 existing inventories. 

Only new inventories in 2019, directly imported or locally produced by refineries, are covered by the second tranche of excise tax. 

The agency said the level of inventories varies depending on the status of individual depots and retail outlets and product turnover.

“The funds to be raised from these collections will be invested to the people through key infrastructure projects, intensified social development and other priority projects of the government,” Cusi said. 

“I hope that every Filipino will be supportive of government causes. Also, let us remain vigilant and work together for utmost consumer welfare promotion,” he said.

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