Malacañang said Wednesday that the country’s economic managers will determine possible rates of a proposed oil excise tax cut if President Ferdinand Marcos Jr. exercises emergency powers amid Middle East tensions.
Communications Undersecretary and Palace Press Officer Claire Castro explained that the President would consult his economic team if he decides to reduce excise taxes on petroleum products once Dubai crude exceeds $80 per barrel.
“Wala pong napag-usapan kahapon. At makikinig naman din po siya sa mga economic team kung ano ang pinakamagandang reduction rate,” Castro said.
She noted that Marcos cannot suspend mandatory excise taxes on oil and fuel products without a new law from Congress.
Under Republic Act 10963 (TRAIN Law), excise taxes on petroleum products were implemented in three tranches from 2018 to 2020. The law allowed for automatic suspension of excise tax increases if Dubai crude reached $80 per barrel—but only during that 2018–2020 period.
Castro explained that Marcos may certify as urgent a proposed measure granting him authority to reduce excise taxes, describing it as “timely.”
“Ang sabi po sa atin kapag nag-lift or nag-suspend ang excise tax ay dapat 2018 to 2020,” she said.
“So, sa ngayon po ay hindi siya umiiral kaya nais po ng Pangulo na magkaroon ng panibagong batas para mabigyan siya ng authority na ma-reduce ang excise tax.”
She also reiterated that any excise tax cut would be temporary.
Amid rising Middle East tensions, Marcos assured the public on Tuesday that the Philippines has sufficient oil supply, with stockpiles ranging from 29 to 67.5 days depending on the product.
He added that the government is prepared should Dubai crude range between $80 and $90 per barrel for two months.