LACSON PUSHES TARGETED FUEL SUBSIDIES OVER BROAD CASH AID, QUESTIONS EXCISE TAX SUSPENSION

Senate President Pro Tempore Panfilo Lacson on Tuesday called on the government to shift away from broad cash assistance programs and instead adopt targeted fuel subsidies to better support sectors most affected by rising oil prices amid escalating tensions in the Middle East.

Lacson argued that existing “ayuda” initiatives often fail to reach those directly impacted by surging fuel costs, such as transport workers and commuters. He recommended more precise interventions, citing strategies used in countries like Taiwan.

“Hindi ako nagmamarunong. Ang suggestion ko lang, pag-aralang mabuti kung anong mas nakakabuti sa sektor na talagang apektado,” Lacson said in a radio interview.

Rather than suspending fuel excise taxes—which could significantly reduce government revenues—Lacson proposed reallocating equivalent funds toward targeted subsidies, provided alternative revenue sources are secured.

Citing Department of Finance data, he noted that suspending excise taxes on petroleum products could cost the government over ₱200 billion by 2027, potentially rising to ₱320 billion if VAT on oil products is also removed.

“Pag-aralan lang, isama sa consideration sa halip mag-suspend. Kasi… maski pumalo ng $100 per barrel sa world price, pwedeng di ma-suspend pero ang revenue na di mawala, baka pwedeng pagaralan para ilagak kung saan ang direktamenteng apektado ng presyo yan ang makikinabang. At di lang may kotse ang makikinabang,” he explained.

Lacson also pushed for a shorter monitoring period to determine when fuel tax suspensions should be triggered, citing the extraordinary situation caused by rapidly rising global oil prices.

At the same time, he criticized the current aid distribution system, saying it is often influenced by political considerations and relies on outdated beneficiary lists.

“Parang nahirati tayo sa ayuda. Kung ia-analyze natin context muna, ang nabigyan ng ayuda, hindi naman ito ang apektado ng gasolina. Ito ang matagal nang nakalista,” he said.

“Totoo bang naibsan ang kahirapan sanhi ng pagtaas ng oil, presyo ng langis, ang ating kababayan na talagang apektado? Transport sector, ordinary commuters, tataas,” he added.

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