Bill filed giving President special powers to suspend oil tax
A bill that seeks to give President Marcos powers to suspend the excise on petroleum products when warranted, such as during the ongoing conflict in the Middle East, was filed by Marikina Rep. Miro Quimbo on Tuesday.
In a statement, Quimbo said he supports calls to suspend the excise on fuel to protect consumers from the expected rise in global crude oil prices due to the conflict involving the United States, Israel and Iran.
“However, this cannot be done through executive action alone. Under existing law, the President will need the authority from Congress to suspend the fuel excise tax. Therefore Congress must immediately pass a measure authorizing the President to suspend the excise tax on fuel during extraordinary circumstances, subject to clear and measurable triggers,” said Quimbo, who also chairs the House committee on ways and means.
His House Bill No. 8257 amends Section 148 of the National Internal Revenue Code to include a provision that will allow the sitting President to suspend the imposition of the excise tax upon the recommendation of the finance secretary.
The suspension can be implemented once the average Dubai crude oil price reaches or exceeds $80 per barrel for a continuous period of at least three months, or when a state of national emergency or calamity has been declared by the President, or when a development results in extraordinary increases in domestic pump prices as certified by the energy secretary.
“The suspension may be applied to specific petroleum products and may be implemented either as a full suspension or partial reduction of the applicable excise tax rates,” the proposed amendment read.
Report to Congress
Once the suspension is enforced, the President, through the finance secretary, will be required to submit a report to Congress after the first 15 days and every month thereafter regarding the factual basis for the suspension and reduction of excise, estimated forgone revenues, and expected impact on inflation, fuel prices and other economic activities.
President Marcos on Tuesday said he would ask Congress to grant him emergency powers that would allow him to reduce the excise on petroleum products as fuel prices are expected to rise rapidly due to the crisis in the Middle East.
On Tuesday, Sen. Joel Villanueva filed Senate Bill No. 1922 authorizing the President, upon the recommendation of the finance and energy departments, to suspend or reduce the excise on gasoline and diesel when average prices reach or exceed $80 per barrel.
Sen. Bam Aquino likewise filed Senate Bill No. 1923 seeking to grant the President authority to suspend the excise on oil products during national and global emergencies.
No need for that
However, lawmakers from the Makabayan bloc, composed of ACT Teachers party list Rep. Antonio Tinio, Gabriela party list Rep. Sarah Elago, and Kabataan party list Rep. Renee Louise Co, said there are already proposed measures in Congress that would address issues on excise taxes, including bills seeking the permanent their permanent removal and that of the value-added tax on petroleum products.
“There is no need for new discretionary presidential powers. What is needed is the political will to act on these measures now. This request for so-called flexibility is a smokescreen that keeps the people begging for temporary concessions from the President instead of enacting laws that decisively remove these burdens and dismantle the oil cartel,” the bloc said in a joint statement.
