According to Finance Secretary Mr. Carlos Dominguez III, the new administration would back for an increase excise taxes on fuels, perceiving that the perfect timing for such move with oil prices is now.
Oil and other related petroleum products are currently taxed at variable rates of around P4.50 a liter or kilogram. The Finance head explained that it is not as valuable as it was set in 1997, so they have to at least index the price. Dominguez further explained that now is the right time to do it simply because the prices of oil right now are relatively low.
The previous administration suggested the act of indexing oil excise taxes under their proposed Comprehensive Tax Reform Program. According to them, it is good to explore indexing excise taxes of oil to inflation. Moreover, they pointed out that the country would receive an additional revenue of P132-billion if the excise tax on fuel would increase.
It added that the reform on oil tax could cover other petroleum products to embody the economic expenses of climate change.
