Senator Paolo Benigno “Bam” Aquino pushes back against assertions that eliminating excise taxes and value-added tax (VAT) on fuel products primarily benefits high-income Filipinos, emphasizing that elevated petroleum prices directly strain lower- and middle-income families.
In a public statement, Aquino highlighted that the ripple effects of rising pump prices affect transport workers, small business operators, and everyday consumers.
“Kailangan na ng agarang solusyon sa paglobo ng presyo ng produktong petrolyo na nakakaapekto sa ating mga kababayan…Libu-libong driver at operator ng jeep, taxi, tricycle, bus, motorcycle taxi, at TNVS ang naghahanapbuhay araw-araw upang maihatid ang ating mga manggagawa sa kanilang mga trabaho,” Aquino said.
The lawmaker noted that inadequate public transport infrastructure forces many middle-class workers to rely on personal vehicles. He added that agricultural producers, fisherfolk, and logistics-dependent small businesses also absorb severe operating costs whenever fuel prices rise.
Aquino urged the executive branch to exercise the statutory authority under Republic Act 12316, which permits the President to suspend or reduce fuel excise taxes when average Dubai crude oil prices sustain or exceed $80 per barrel for one month.
To address persistent price pressures, Aquino has authored Senate Bill No. 265 to remove excise taxes on petroleum products and Senate Bill No. 2017 to lower the general VAT rate from 12 percent to 10 percent on goods and services, including fuel.
His statement comes after Finance Secretary Frederick Go expressed opposition to tax relief proposals on gasoline and diesel, arguing that fuel tax suspensions are non-progressive because higher-income households consume a larger share of fuel. Go previously noted that suspending these levies would result in approximately P12 billion in monthly revenue losses, making the Development Budget Coordination Committee disinclined to support the measure without alternative revenue sources.