President Ferdinand Marcos Jr. said the government continues to study proposals to temporarily suspend the value-added tax (VAT) on petroleum products, stressing that current tax collections remain essential in funding subsidies and assistance programs amid rising fuel prices.
Speaking at Malacañang following the announcement of the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene, Marcos noted that higher fuel prices have also led to increased VAT revenues for the government.
“We will get extra funds from that. If we take away the VAT on petroleum products, it will only help the petroleum market,” Marcos said. “What we need is funding to help the entire society. Hindi pwedeng titignan lang natin petroleum… We also have to take care of the other sectors.”
The President emphasized that VAT collections are being allocated to government relief efforts, particularly for vulnerable sectors affected by rising costs.
“So with the additional funding that we will get from the VAT collections, yun ang gagamitin ngayon natin to provide,” he noted.
Despite growing calls from various sectors to suspend VAT on fuel products, Marcos assured that the administration is keeping all policy options open.
“We will still examine it. Like I keep telling you, there’s nothing that we are not looking at as a possible option,” he said. “If the time comes that it really calls for, if the time will come that VAT should be brought down for whatever products, then we will certainly study it very well.”
Marcos reiterated that VAT revenues ultimately serve broader public welfare, funding subsidies, cash assistance, and other programs aimed at cushioning the impact of energy price increases on Filipino households.