President Ferdinand Marcos Jr. will certify as urgent a proposed measure granting him temporary authority to reduce excise taxes on petroleum products as global oil prices rise, Malacañang said Wednesday.
Palace Press Officer Undersecretary Claire Castro said the move is meant to help cushion the impact of rising fuel costs on Filipino consumers.
“Yes po, dahil po napapanahon,” Castro said when asked if the President would declare the measure urgent.
Marcos earlier said he would consult with congressional leaders on a proposal that would allow him to reduce fuel excise taxes if Dubai crude prices exceed $80 per barrel.
Castro said the specific rate for a possible excise tax reduction has yet to be determined and that the President would first consult with the government’s economic managers.
“Wala pong napag-usapan kahapon, at makikinig naman din po siya sa mga economic team kung ano iyong pinakamaganda po na reduction rate,” she said.
She added that any tax reduction would only be temporary and aimed at easing the burden on motorists should fuel prices continue to surge.
“At sabi naman po ng Pangulo, ito ay temporary, para lang po makaagapay tayo kung darating po talaga na sobrang mahihirapan ang ating mga kababayan sa pagtaas po ng presyo ng krudo,” Castro said.
Castro also explained that the President is seeking new legislative authority because provisions under the Tax Reform for Acceleration and Inclusion Law allowing the suspension of fuel excise taxes only applied between 2018 and 2020.
“Kapag po nag-lift o nag-suspend ng excise tax ay dapat po 2018 to 2020. So sa ngayon po ay hindi na umiiral, kaya ninanais ng Pangulo na magkaroon ng panibagong batas para mabigyan siya ng authority na ma-reduce ang excise tax,” she said.
Global oil prices have recently climbed amid tensions in the Middle East following the conflict involving the United States, Israel, and Iran, raising concerns over supply disruptions in the region.