SENATOR Francis “Chiz” Escudero wants the government to tap the unexpected windfall from value-added tax (VAT) collections on petroleum products for direct financial assistance to sectors affected by the rising fuel costs since the Middle East war erupted last February.
According to Escudero, the surge in VAT revenues should not be treated as additional income, but should be set aside as funds to help ordinary Filipinos cope.
“‘Windfall’ lang ang tawag diyan dahil hindi naman planado o pinaghirapan ng gobyerno ang dagdag na koleksyon. Tumaas lang ang presyo ng langis kaya mas mataas din ang VAT na pumapasok. Mas tama na ibalik ito sa mga pinakaapektadong sektor bilang tulong,” he said.
By doing so, the senator added, it blunts the perception of profiting from the crisis like some unscrupulous business owners.
“It’s like a businessman profiteering from high prices. Government is not a businessman, and it should not engage in profiteering,” he pointed out. “Kung hindi naman tatanggalin ang VAT, ibalik na lang sa taumbayan ang dagdag o windfall na kita mula rito bilang ayuda,” he said.
The veteran legislator’s proposal comes after President Ferdinand Marcos Jr. stated that the administration would retain VAT on petroleum products, citing the “windfall” revenue as a source of funding for crisis response.
Marcos said suspending VAT would primarily benefit oil firms rather than consumers.
Finance Undersecretary Karlo Fermin Adriano earlier estimated that higher fuel prices could generate an additional P13 to P14 billion in VAT collections, even with the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene, which are more widely used by households and small businesses.
