Photo courtesy of Philippine News Agency (PNA).
President Ferdinand Marcos Jr. announced on Monday the suspension of excise taxes on liquefied petroleum gas and kerosene as fuel prices remained elevated.
The move took effect on the first day of the new law allowing the President to reduce or suspend fuel excise taxes under specific conditions.
Marcos said the government was still studying whether to extend similar tax adjustments to diesel, gasoline, and other petroleum products used in transport and industry.
He also expressed reservations about proposals to remove the 12 percent value-added tax on fuel, noting that collections from the levy support assistance programs for affected sectors.
The President said VAT revenues were being used to fund broader social support, beyond transport workers, including other vulnerable groups.
Republic Act No. 12316, signed on March 25, granted the President authority to act when global oil prices reach a specified threshold.
Under the measure, the excise tax on kerosene amounting to about Php 5.65 per liter was lifted, while the Php 3.36 per kilogram levy on LPG was also suspended, resulting in lower household fuel costs.
Further discussions on possible tax adjustments for other fuel products were scheduled in an interagency meeting, as the government weighed measures to manage prices and ensure stable supply.
