SENATOR Chiz Escudero on Wednesday, March 4, called for amendments to the Tax Reform for Acceleration and Inclusion (TRAIN) Law that will empower the President to suspend or lower excise and value‑added taxes (VAT) on fuel whenever global oil prices exceed the benchmark assumptions for Dubai crude set in the government’s Budget of Expenditures and Sources of Financing (BESF).
According to Escudero, the current safeguard in the TRAIN Law or Republic Act No. 10963 is “too narrow” and requires specific conditions before excise taxes can be suspended. He said a broader amendment is needed to ensure faster relief for consumers during oil shocks caused by force majeure events such as wars or global crises.
The veteran legislator shared that this has always been his position to grant the President automatic authority to suspend tax impositions to protect the public from sudden fuel price increases.
“The law should be amended to automatically give the President that power to suspend or lower excise and VAT rates when prices exceed the estimated range of Dubai crude oil based on the BESF, which guides government budget assumptions,” he said.
“Government cannot enjoy windfall in excise taxes at the expense of the public because of increase in prices brought about by force majeure,” Escudero added.
The senator’s proposal comes as President Ferdinand Marcos Jr. announced that he will ask Congress for emergency powers to reduce excise taxes on petroleum products if Dubai crude exceeds $80 per barrel, a move the Chief Executive envisioned will help protect the Filipino people from impact of rising global oil prices.
Escudero said that the while the President’s request for emergency powers is a step in the right direction, a permanent amendment would be more effective.
“We should not wait for every crisis to pass through Congress before action can be taken. The law must already provide the President with the automatic authority to act when conditions demand it,” he pointed out.
