Daily Star logoBusiness



Bacolod City, Philippines Friday, July 29, 2016
Front Page
Negros Oriental
Star Business
Opinion
Sports
Star Life
People & Events

 

DOE to study fuel tax hike

MANILA -- The Department of Energy will conduct a study on the proposed additional excise tax for fuel products and its looming impact to consumers.

”The DOE will provide accurate data for the congressmen and senators, so that they could decide appropriately the impact of the proposed additional excise tax (on gasoline and diesel) to the ordinary citizens,” DOE spokesperson Wimpy Fuentebella told reporters yesterday.

He explained that the proposed excise tax on gasoline and diesel will definitely lead to an increase in pump prices and will be further subjected to 12 percent value added tax.

Data from DOE revealed that the country's consumption of gasoline for 2015 was 5.22 billion liters, while diesel was 9.34 billion liters.

Based on the National Internal Revenue Code of 1997, the government imposes a fixed excise rate for fuel products.

Unleaded gasoline is taxed P4.35 per liter, while leaded gasoline has a P5.35 per liter levy.

Meanwhile, diesel is zero rated.

The Department on Finance is now pushing for additional excise tax rates on petroleum since it has remained unadjusted to inflation since 1997.

The indexation to inflation will adjust the current fuel levies to P10 per liter of gasoline from P4.50. Diesel products, on the other hand, will be taxed P6 a liter, removing its excise tax exemption status.

Fuentebella, however, stressed that the Congress will ultimately decide on the imposition of additional excise tax on fuels.*PNA

 

back to top

Business
Button No recommendation for EDC entry into Mt. Mandalagan
Button Noneco complains vs. NGCP
Button DOE to study fuel tax hike

Button Ceneco to open service center