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Emerging proposals to adjust excise tax on petroleum products are premised on the fact that most of the tax rates were set as early as 1996.  Several considerations must be taken into account in the process of reforming the tax system. One, the country‚Äôs excise tax must be  comparable  with  those  of ASEAN member-states.  Two,  increase  in  the  price  of  basic commodities as a result of higher taxes could diminish the purchasing power of consumers. Three, petroleum products are essential inputs to the production, processing and movement of  goods.    The  transport  sector  uses  up  more  than  two-thirds  of  total petroleum  products followed by commercial and industry sectors.  Four, importers and refiners of oil products are subject to value added tax or VAT, in addition to excise tax.  Being a price-based tax, the VAT automatically responds to inflationary changes which the specific excise tax is not able to capture. 

On the positive side, incremental revenues from higher tax rates will help the government to address the unmet needs of the Filipino people.  Additional tax collections may be used to  beef  up  infrastructure  spending,  upgrade  mass transport  system,  and  improve  traffic management,  among  others.    Also, higher  fuel  price  could  result  in  more  prudent  use  of petroleum  products,  longer  service  life  for  roads  and  bridges,  traffic  decongestion,  and lower carbon emission. >>read complete document

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finffacts in figures

Panel Bot Budgetg Brieferbudget Briefer

 

 

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finffacts in figures

Panel Bot Budgetg Brieferbudget Briefer

 

 

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finffacts in figures

Panel Bot Budgetg Brieferbudget Briefer