Marcos on Cutting Excise Tax on Fuel: ‘We’ll See, Depends on Trends’ | INQToday
Why It Matters
The potential excise‑tax cut directly affects consumer fuel costs and inflation, while testing the limits of executive fiscal authority amid volatile global oil markets.
Key Takeaways
- •President Marcos may use emergency powers to cut fuel excise tax.
- •Decision hinges on oil price trends amid Middle East conflict.
- •Senate and House passed bills granting authority for tax adjustments.
- •Diesel prices in Metro Manila hit 115 pesos per liter.
- •Cash subsidies for PUV drivers to roll out nationwide by April.
Summary
President Ferdinand "Bongbong" Marcos Jr. signaled that he could invoke emergency powers to suspend or reduce excise taxes on petroleum products, a move aimed at tempering the surge in fuel costs triggered by the Middle East war. The proposal has already cleared both chambers of Congress, granting the executive the legal authority to adjust tax rates or allocate funds to cushion consumers.
The administration highlighted several data points: diesel in Metro Manila has climbed to roughly 115 pesos per liter, prompting cash assistance for public‑utility‑vehicle (PUV) drivers and broader subsidy programs. In parallel, lawmakers are fast‑tracking bills to amend the 2006 Biofuels Act and to formalize excise‑tax reductions, signaling a coordinated fiscal response.
Marcos emphasized the uncertainty of global oil markets, stating, “We will see, depends on the trends,” underscoring that any tax cut will be contingent on price trajectories. He also noted that the government is already distributing cash aid to PUV drivers, with a nationwide rollout slated for April, illustrating immediate relief measures while longer‑term policy remains under review.
If enacted, a tax reduction could lower pump prices and ease inflationary pressure on households, but it also risks reducing government revenue at a time of heightened fiscal demands. Market participants will watch oil price movements closely, as the president’s decision could set a precedent for future emergency fiscal interventions in the Philippines.
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