The lingering economic difficulties that arose from the Covid-19 pandemic has prompted Senator Imee Marcos on Tuesday to call for a one-year suspension of the value-added tax (VAT) on oil products.
Marcos said that suspending the 12% VAT on oil products will provide relief to various consumers other than motorists.
“Oil price hikes have a domino effect on agricultural products and other essential goods. The higher costs will be passed on to the ordinary consumer who may still not have a job but has no choice but to deal with rising prices of food, electricity, and other goods,” Marcos explained.
Marcos, who chairs the Senate committee on economic affairs, noted another oil price increase amounting to P1.15 for gasoline, P0.60 for diesel, and P0.65 for kerosene.
Since January, she said fuel prices per liter have already increased by P13 for gasoline, P10 for diesel, and P9 for kerosene.
The 12% VAT on fuel products was applied by the government in addition to the excise tax under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
President Duterte signed the law imposing excise taxes of P2.50 per liter of diesel and Php7 per liter for gasoline in December 2017.