Manila City Mayor Francisco “Isko Moreno” Domagoso’s proposal to slash excise tax on fuel by 50 percent has gained support in the House of Representatives with a number of lawmakers filing separate bills to lower the excise tax on fuel products.
Moreno, if elected president, earlier vowed to cut excise tax on petroleum products by 50 percent as this would directly benefit not only poor people but also the middle class who have been at the receiving end of the weekly price increases of crude oil.
“If we implement a tax cut on gasoline and petroleum products, we can expect more jeepneys plying their routes and they will earn more since there will be more commuters who are going to their places of work. When drivers earn more, they will have more buying power and this will further perk up the economy,” Moreno said.
This has been one of Moreno’s key messages during his “Listening Tour” that brought him to the provinces of Tarlac, Pampanga and Cebu over the weekend.
During a talk before workers of BPO firms in Cebu City on Saturday, Moreno told his audience he felt vindicated with the number of bills filed in the Lower House echoing his tax cut on fuel.
“You see, if I’m wrong, if the tax cuts we’re talking about are not doable, why there are four bills suddenly filed in Congress seeking for the suspension of excise tax. I said that about three weeks ago and then someone filed it four days ago,” he said.
“If I am wrong, why would a congressman, who is not my party mate, think of the same thing? If what I say makes no sense, who would file that bill? I am an optimistic guy. I hope the measure is passed,” he added.
Albay Rep. Joey Salceda, who chairs the House Committee on Ways and Means, file House Bill 10438 which calls for the lowering the excise tax on fuel products for six months, including zero tax for diesel, with the revenue to be foregone by the government estimated at more than P55 billion.
The measure, if signed into law, would exempt diesel and kerosene from excise tax and would reduce the charge on gasoline to P7 per liter from P10 per liter. The excise rate was set by the Tax Reform for Acceleration and Inclusion (TRAIN) Law and is enforced between Dec. 1, 2021 and June 1, 2022.
“Diesel is the poor man’s transport fuel. Tricycles, motorcycle delivery riders, farmers, and jeepney drivers use diesel for their vehicles. Kerosene is the poor man’s cooking fuel. I believe that the biggest reduction should be on these commodities,” Salceda said in a statement. Rey E. Requejo
Moreno said the positive effects of the tax cut on fuel will be immediately felt by operators and drivers of PUVs who will now forego their demand for fare adjustment.
Moreno said a 50 percent tax cut on electricity would mean more food on the table and more money to spend on basic needs, including medicines.
“We cannot bring down the cost of power generation but the end-users or the consumers, can be made to pay lower electricity bills. How? Let’s reduce the electricity tax by 50 percent. The government’s revenue will be reduced, but the people will benefit because of the big money they will save,” Moreno said.
