On Thursday, March 12, President Ferdinand Marcos Jr. certified as urgent a bill granting him emergency powers to suspend or reduce excise taxes on petroleum products. The move aims to address soaring fuel prices amid Middle East tensions. Sen. Win Gatchalian warned of tradeoffs, including a potential P136 billion revenue loss for the government.
In a letter to House Speaker Bojie Dy, President Ferdinand Marcos Jr. certified the necessity of immediate enactment of House Bill 8418, which authorizes the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies, amending the National Internal Revenue Code of 1997. Marcos stated it would 'allow the government to respond promptly to extraordinary fuel price volatility and stabilize domestic fuel prices during the period of severe economic disruptions.'
The House of Representatives has already passed its version on second reading, while the Senate plans to pass its version next week. Certifying the bill as urgent enables Congress to shorten the usual three-day wait between readings, allowing second and third readings on the same day.
However, Sen. Win Gatchalian, chair of the Senate Committee on Finance, warned that suspending excise taxes would involve tradeoffs. 'The reality is that there will be a tradeoff. But we should not sacrifice government support for social services, education and health,' he said. The Department of Finance has warned that the suspension could cost the government P136 billion in revenues if implemented from May to December.
Gatchalian urged the Department of Budget and Management to identify programs for scaling back, such as reducing official travel, fuel and electricity consumption, and introducing a four-day workweek in some agencies. He also called for the timely release of P75 million in fuel subsidies for farmers and another P75 million for fisherfolk, sectors hit hard by rising costs. 'A timely release of the subsidy would provide immediate financial relief to the country's most vulnerable sectors amid expectations of higher operational costs,' Gatchalian said.
The government has assured sufficient fuel supplies for two months but encouraged energy conservation amid concerns over a prolonged Middle East conflict.
