The Philippine Chamber of Commerce and Industry and other business groups asked the government to suspend next year’s tranche of oil tax hike under the Tax Reform for Acceleration and Inclusion law.
PCCI president Maria Alegria Limjoco said local businesses would be gravely affected by the additional tax hike, as prices of crude and other petroleum products were on an upswing since 2017.
“We will push for the increase to be suspended. It will be one of the business community’s resolution during the Philippine Business Conference that will be held on Oct. 18 to 19 at Manila Hotel,” she said.
Under the Train law, tax on diesel already increased to P2.5 per liter in 2018, with subsequent adjustments of P4.50 a liter in 2019 and P6 a liter in 2020.
The same goes for gasoline with adjustments of P7 a liter in 2018, P9 a liter in 2019 and P10 a liter in 2020.
Liquefied petroleum gas, which was not taxed previously, is now taxable by P1 a liter in 2018, P2 a liter in 2019 and P3 a liter in 2020.
Aviation gas was taxed P4 a liter; asphalt, P8 per kilo; kerosene, P3 a liter; naphtha, P7 a liter; bunker fuel, P8 a liter; lubricating oil, P8 a liter; paraffin wax, P8 a liter; and petroleum coke, P2.50 a liter.
Energy Secretary Alfonso Cusi earlier asked the oil industry to “reduce industry take” or profit to help mitigate the impact of high oil prices on consumers
Data from the Department of Energy showed that gasoline prices posted a net increase of P10.40 per liter since the start of the year. Diesel prices climbed P10.70 per liter while kerosene cost jumped P9.35 per liter.
Gasoline now sells from a range of P53.55 to P66.35 per liter depending on the octane level while diesel sells from P45.65 to P54.90 per liter.
PCCI said that the increase in oil prices would have an inflationary effect and depress the value of products dependent on petroleum.
Limjoco said there was a standing offer from the Finance Department to provide subsidy to sectors that might be severely affected by the taxation hike.
She said that while the Finance Department would find it hard to suspend the tax adjustment in oil, the business group would continue to ask the President to temporarily defer another tax hike.
