Press Release
May 25, 2018

Sen. JV renews call to suspend TRAIN's fuel excise tax increase

In order to protect the interests of consumers and the public, I renew my call for the suspension of the increase in excise tax on fuels in the face of spiralling inflation and fuel prices. I urge government to implement the TRAIN Law provision that provided for the suspension of fuel excise tax increase "when the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) for three months prior to the scheduled increase of the month reaches or exceeds $80 per barrel."

Inflation has reached 4.5% in April and the price of crude oil is nearing $80 per barrel as prices of gasoline has skyrocketed by more than P8 since January 2018. While we understand the need of government to increase revenues, we need to prioritize the protection of the public who are bearing the brunt of these high prices which is negating the increase in take home pay brought about by lower income taxes.

It is precisely the protection of the public, especially the poor that led the Senate to approve a version of the TRAIN Law that has a lower excise taxes at P1.75 and a safeguard that suspends the excise taxes when inflation breaches 4%. This safeguard, however, was taken out in the bicameral conference committee version.

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