The House of Representatives on Monday approved on third and final reading a measure authorizing President Ferdinand Marcos Jr. to temporarily suspend or reduce excise taxes on petroleum products amid rising global oil prices.
House Bill No. 8418, certified as urgent by the President, was passed with 247 affirmative votes, three negative votes, and no abstentions.
Under the measure, the President may reduce or suspend excise taxes upon recommendation of the Development Budget Coordination Committee and in coordination with the Department of Energy. The authority is designed to allow swift government action while maintaining safeguards.
One condition for tax relief is when the average Dubai crude oil price, based on the Mean of Platts Singapore benchmark, reaches or exceeds $80 per barrel for one month prior to issuance of the order.
Another trigger would be a state of national emergency or calamity resulting in extraordinary fuel price increases, as certified by the Energy Secretary.
The suspension or reduction may apply only to specific petroleum products and can be partial or full, depending on economic conditions.
To prevent misuse, the relief may last for no more than six months, extendable or terminable by Congress, with the total aggregate period capped at one calendar year.
The authority is valid until December 31, 2028. The bill also requires the President, through the Department of Finance, to submit reports to Congress within 15 days of issuance and monthly thereafter, detailing the basis for adjustments, foregone revenues, and expected impacts on inflation and fuel prices.
Agencies including the DBM, NEDA, BSP, BIR, and BOC are tasked to issue implementing rules within 15 days once the measure becomes law.
Ilocos Norte Rep. Sandro Marcos and House Speaker Faustino Dy III backed the bill, stressing its role in cushioning the public from oil price shocks.
“The House is moving to address an oil price crisis. This bill gives the President a lawful and time-bound way to cut or suspend fuel excise taxes so relief can reach the public before higher oil prices trigger a wider increase in fares, food and other basic expenses,” Marcos said.
“The proposal offers real relief, especially for workers, drivers, small businesses and families who feel the impact of every peso added to the cost of fuel,” he added.