Marcos signs law allowing fuel tax cuts

PRESIDENT Ferdinand R. Marcos, Jr. signed into law on Wednesday a measure granting the Executive branch temporary authority to suspend or reduce excise taxes on petroleum products when global oil prices hit critical levels, as the government seeks to cushion consumers and the economy from volatility in crude markets.

Republic Act No. 12316 amends Section 148 of the National Internal Revenue Code of 1997, which governs excise taxes on manufactured oils and other fuels.

The measure was approved with the concurrence of Senate President Vicente C. Sotto III and Speaker Faustino “Bojie” G. Dy III, and will take effect 15 days after its publication in the Official Gazette.

Under the law, the President may suspend or reduce fuel excise taxes upon the recommendation of the Development Budget Coordination Committee, in coordination with the Energy secretary, when the average Dubai crude oil price — based on the Mean of Platts Singapore benchmark — reaches or exceeds $80 per barrel for one month.

The authority allows flexibility, enabling tax relief to be applied selectively to certain petroleum products and either fully or partially. Any suspension or reduction may last for up to three months, with total relief capped at one year within any given period. — Erika Mae P. Sinaking