The proposed suspension of excise taxes on petroleum products should not undermine government funding for essential programs, Senator Sherwin Gatchalian asserted on Thursday.
The lawmaker reminded that any move to suspend the excise tax must be weighed against the government’s responsibility to sustain funding for programs that support vulnerable sectors and public services.
“There will definitely be trade-offs. But we should not sacrifice government support for social services, education and health,” said Gatchalian, who serves as vice chairperson of the Senate Committee on Ways and Means.
The Department of Finance estimates that the government could lose as much as P136 billion in revenue if the suspension of the excise tax is implemented from May to December this year.
Gatchalian, who also chairs the Senate Committee on Finance, said the government must identify specific areas where spending can be reduced to manage the financial gap.
Possible cost-saving measures, he said, could include reducing official travel by government personnel and lowering fuel and electricity consumption across agencies.
He noted that some government agencies have begun implementing a four-day workweek, which could also help cut operational costs.
The senator also called for the immediate release of fuel subsidies for farmers and fisherfolk as rising oil prices linked to the Middle East conflict increase their operating expenses.
Under the 2025 General Appropriations Act, the government allocated P75 million to the Department of Agriculture for fuel assistance to farmers using postharvest facilities and other agricultural equipment.
Another P75 million was allocated to the Bureau of Fisheries and Aquatic Resources to provide fuel subsidies to fisherfolk.
Gatchalian said the funds remain unused and could still be distributed as part of the continuing budget.
He added that additional financial support could also be sourced from the Assistance to Individuals in Crisis Situation program if necessary.
“If we can help our farmers and fisherfolk as soon as possible, it will go a long way in ensuring stable food prices and supply in the country,” the lawmaker said.
