Senator Erwin Tulfo on Monday urged the removal of the value-added tax (VAT) on fuel, arguing that the recent suspension of excise taxes is insufficient to ease the burden of rising prices on basic commodities.
Speaking during the Senate’s proactive response and oversight panel, Tulfo stressed that current measures may not significantly benefit consumers.
“May mga nagsasabi po … na ‘yung pag-suspinde po sa excise tax na ipinasa po natin dito, isinumite na po sa Pangulo, will not be sufficient,” Tulfo said.
He downplayed the impact of the 10% excise tax reduction, describing it as largely symbolic.
“Pero actually, hindi po talaga mararamdaman ng mga tao po ito, itong 10% reduction na excise tax,” he added.
Tulfo argued that the relief mainly benefits vehicle owners, while commuters feel little impact.
“If we remove excise tax (only) sa mga gasolina, mararamdaman po ng konti ‘yun ng mga may sasakyan. But ‘yung mga nag-commute po, hindi nila mararamdaman po ito,” he explained.
He emphasized that removing VAT on fuel would have a broader effect, potentially lowering transport costs and reducing prices of goods and services.
The Department of Economy, Planning, and Development acknowledged the proposal and said it is studying the wider fiscal implications of adjusting fuel taxes.
Tulfo’s call comes after President Ferdinand Marcos Jr. signed Republic Act No. 12316, granting the executive branch emergency powers to reduce or suspend fuel excise taxes.
Earlier this week, Marcos approved an excise tax cut limited to liquefied petroleum gas (LPG) and kerosene.