Senator Win Gatchalian emphasized that any plan to temporarily reduce excise taxes on petroleum products to ease rising oil prices should not compromise funding for crucial social services, education, and healthcare.
During a Senate Committee on Ways and Means hearing on Tuesday, Gatchalian and representatives from several government agencies examined the potential consequences if legislation is passed allowing President Ferdinand Marcos Jr. to suspend fuel taxes amid growing tensions in the Middle East.
The Department of Finance warned that suspending the excise tax from May to December this year could lead to an estimated ₱136 billion in lost revenues.
Excise taxes on petroleum products form a significant part of government income under the Tax Reform for Acceleration and Inclusion (TRAIN) law, which supports both infrastructure projects and social service programs.
As chair of the Senate finance committee, Gatchalian questioned the Department of Budget and Management about which specific programs or expenditures could be reduced to offset the projected shortfall.
“These items could include less travel for government personnel, lower fuel and electricity consumption as some government agencies begin implementing a four-day work week,” he said.
Currently, seven senators have filed separate bills proposing to give the president authority to suspend or lower fuel taxes. Any action by Marcos would still require congressional approval, since the Constitution vests the power to modify taxes in the legislative branch.
Meanwhile, the House of Representatives approved a comparable measure on second reading on Wednesday, signaling momentum for the proposal in both chambers of Congress.