Marcos signs law allowing him to suspend or reduce fuel excise tax

MANILA, Philippines – President Ferdinand Marcos Jr. on Wednesday, March 25, signed into law a bill authorizing him to suspend or reduce excise tax on petroleum products amid rising oil prices driven by the Middle East crisis.

Under Republic Act No. 12316, the President may suspend or reduce fuel excise tax when the average Dubai crude oil price reaches or exceeds $80 per barrel for one month.

“Any suspension or reduction…shall be effective for a period not exceeding three months, provided that the aggregate period of the suspension or reduction shall not exceed one calendar year,” RA 12316 read.

The President can only exercise this power to suspend or reduce the fuel excise tax until December 31, 2028. The excise tax will also revert to the rates specified under the National Internal Revenue Code under the following conditions:

• One week after the one-month average of Dubai crude oil price falls below $80 per barrel, as certified by the Department of Energy (DOE); or
• After three months, whichever comes first.

During the suspension or reduction of the fuel excise tax, oil companies must submit to the DOE monthly information on the cost components of the price of petroleum products sold.

Marcos had certified this measure as urgent last March 16. The House of Representatives approved the measure on the same day, with the Senate approving it the following day.

The President’s signature comes a day after he declared a state of national energy emergency. – Rappler.com