Marcos to Decide on Fuel Excise Tax After April 7 DBCC Meeting | INQToday
Why It Matters
The move could immediately lower fuel costs for consumers while creating a sizable fiscal gap, forcing the government to weigh short‑term relief against long‑term budgetary health.
Key Takeaways
- •President Marcos may decide on fuel tax cut April 7
- •DBCC recommendation will determine reduction or suspension of excise taxes
- •Full tax suspension could cost government at least 121 billion pesos
- •Maximum price drop: 6 pesos diesel, 10 pesos gasoline per liter
- •Transport groups also demand 12% VAT suspension on fuel
Summary
President Ferdinand "Bongbong" Marcos Jr. is expected to announce, as early as April 7, whether to cut or fully suspend excise taxes on petroleum products, following a meeting of the Development Budget Coordination Committee (DBCC).
The DBCC will advise on Republic Act 12316, which authorizes emergency tax adjustments. Finance officials warn that a full suspension from May to December could shave off at least 121 billion pesos in revenue, while the maximum price relief would be 6 pesos per liter for diesel and 10 pesos per liter for gasoline, LPG and other fuels.
Palace press officer Clare Castro emphasized the need to balance lower pump prices with fiscal sustainability, noting that any tax change would apply only to incoming shipments, not existing stock. Transport sector leaders have also pressed for a concurrent 12% VAT suspension to deepen price cuts.
The decision will test the administration’s ability to curb inflation without jeopardizing funding for public programs. A modest tax cut could ease commuter costs, but the revenue shortfall may pressure the budget, prompting policymakers to consider broader tax reforms or subsidies.
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