CAGAYAN de Oro City Councilor George Goking on Tuesday called the government to suspend the imposition of excise and value-added taxes on oil products amid continuing oil price hikes.
Goking even urged the Congress to repeal Republic Act 8479 or the Oil Deregulation Law.
“If it helps particularly the poor and vulnerable sectors and cope with rising global oil prices, the Oil Deregulation Law should be repealed,” said Goking.
Goking who is the City Council's committee Ways and Means chair, also said he was in favor to suspend the imposition of excise and value-added taxes on oil products if there is really a need for now.
“Due to the rising prices of crude in the global market, the government should have to sacrifice the imposition of excise and VAT on oil,” he said.
He noted that the rising oil prices disproportionately harm the poor, and suggested that amending the law may alleviate their burden.
He also said if the prices of gasoline and diesel in Metro Manila are at around P70 to P50 per liter, respectively, they are much higher in the region.
“These prices making its impact worse, particularly in food production, transportation, and other services outside Manila,” said Goking.
According to the Department of Energy, unleaded gasoline in Northern Luzon is near P80 and diesel near P70 per liter, in Southern Luzon, around P74 and diesel P61 per liter.
Diesel prices in Cagayan de Oro City ranged from P53.59 to P59.05 a liter.
Goking said that with the Department of Energy (DOE) “passing the ball” to congress to suspend the imposition of excise taxes on oil products brought about by the TRAIN law.
Earlier, the Department of Finance (DOF) is opposing the proposal of suspending the imposition of excise taxes, claiming it would lead to a P131 billion losses of government revenues.
“The Congress should end that Law for the government to intervene and address sudden, prolonged oil price spikes,” Goking said.
He said even though the DOE has been seeking ways to mitigate the impact of the eight consecutive weeks of oil price hikes to consumers, still the problems will exist if there’s another oil global crisis.
“Repeal this oil deregulation law so that the DOE could initiate solution,” said Goking.
Meanwhile, DOE said it required the unbundling of the cost of retail products to determine their true and passed-on cost.
The DOE maintains that the unbundling of oil prices would result to greater market transparency by establishing the trends in the prices of oil and finished petroleum products.
“Repealing the oil deregulation law, would also mean to allow the DOE to rein in rising fuel prices,” said Goking.
Goking added, that, the DOE will also have the authority to suspend [or] to move for the suspension of the excise tax so we have certain measures,"
In related development, Goking said that Petron president and chief executive officer Ramon Ang on Monday, (Nov 8) said he has no problem if the Philippine government would like to buy back the oil firm it used to own.
Ang made the statement during the House ways and means committee hearing on the price monitoring of petroleum products and on the proposed suspension or reduction of excise tax on fuel amid rising fuel prices in the country. (Ben Balce)
