‘Why is the Duterte admin sleeping on this issue?’ Bayan Muna warns higher oil costs may lead to commodity price shocks in December

Billy Begas

House Deputy Minority Leader and Bayan Muna Rep. Carlos Isagani Zarate warned that the series of oil price hikes may cause price shocks in basic goods if the Duterte government fails to suspend the taxes imposed on petroleum products.

“Why is the Duterte administration sleeping on this basic issue and worse why is the government’s economic managers blocking the suspension of oil taxes? Gusto ba talaga nilang pahirapan ang mamamayan? Kapag hindi rin tanggalin ang buwis sa langis maaaring magdulot ito ng price shocks sa Disyembre tulad noong nangyari noong 2018 ng ipatupad ang TRAIN law,” Zarate said.

Zarate also called on leaders of the House of Representatives to fast track the passage of House Bill No. 243 seeking to repeal the excise tax on oil products.

“We call on the House Energy Committee to immediately consider HB 243 that would alleviate our peoples’ burden. Congress should not let the Duterte economic managers, particularly the Department of Finance (DOF), to hoodwink the people once again and block this move,” Zarate added.

Based on the study conducted by IBON Foundation, removing excise tax on petroleum products would lower diesel price by P6.72 per liter and gasoline by P6.33 per liter. It will also lower by P3 per kilo the price of liquefied petroleum gas (LPG).

The DOF said the government will lose P131 billion if excise tax on oil products will be removed next year.

“Hindi dapat hinaharang ng DOF ang suspensyon o pagtanggal na ng excise tax sa petrolyo, lalu na sa diesel, dahil kagyat nitong pabababain ang presyo ng langis at kahit paano ay magpapababa din sa presyo ng mga bilihin,” Zarate pointed out.

Meanwhile, Bayan Muna chairperson Neri Colmenares said government’s revenue losses can be offset by also suspending corporate income tax (CIT) cuts under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).

“IBON also noted that the government projects revenue losses of P115.8 billion in 2021 and P101.8 billion in 2022 from CREATE’s CIT cuts. Reducing indirect consumption taxes such as on oil and increasing direct taxes on income makes the tax system more progressive. This would offset their supposed losses and would give a much needed breather for consumers,” Colmenares said.

Colmenares also pointed out that the government has P120 billion unspent COVID-19 funds and P200 billion fund that the government did not use last year.

“These should be used now to alleviate the plight of consumers. We must act now before it is too late,” ended Colmenares.

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Source: Latest Politics News Today (Politics.com.ph)