CHAIR of City Council’s committee on Trade and Commerce Councilor George Goking today said suspending excise taxes on petroleum products will significantly affect the city’s delivery of social services.
“While the proposed suspension of excise taxes will benefit the transport sector, it will result in government being unable to fund some of its social services and programs,” said Goking.
Earlier this month, increasing calls from several groups for government to halt the collection of fuel excise taxes to help cushion the impact of rising oil prices.
“That proposal so would be counterproductive,” said Goking adding that even the Department of Budget and Management (DBM) rejected proposals to suspend the collection of excise taxes on petroleum products.
“This would even hit “other basic social services,” he said.
Goking cited that for Education will lose funding for K-12 and DOH [Department of Health] will affect their health facilities.
Based on the Department of Budget and Management report, Goking said that if the suspension of excise taxes prevail, the P117 billion in revenues the country would miss out.
Goking, who is also the council’s committee on ways and means chair said government estimates of possible revenue losses were even higher – P131 billion for 2022.
“I am for President Rodrigo Duterte’s economic team to only wants subsidies,” said Goking.
“Kini ang nakitang solusyon sa nasudnong kagamhanan sa gipangayo ug hangyo sa drivers, operators ug mga mag-uuma kabahin sa hilabihan kataas ug sunod sunod nga pagsaka sa presyo sa produktong petrolyo,” said Goking.
Goking added, the proposal to suspend excise tax would result in as much as P48 billion in foregone revenues while the subsidies proposal is estimated to cost the government P6.1 billion.
Meanwhile, the petition for a fare hike was filed as oil prices continue to rise and were expected to further go up due to the impact of Russia’s invasion of Ukraine.
“Government needs to carefully study proposals for the suspension of the excise and value-added tax on fuel as it would mean the loss of revenues that could be used to fund public services,” Goking explained.
“If we remove the excise tax. How will you cover the medical needs of our people under the Department of Health?,” Goking asked.
What will happen to the aid provided by the DSWD? So there is a need to be really careful, according to Goking.
Goking was very grateful that the problem of the transportation sectors and farmers has been addressed as the DBM releases funds to be used as fuel subsidy and support for farmers. (Ben Balce)
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