PHILIPPINE PRESIDENT GRANTED EMERGENCY POWERS TO CUT, SUSPEND OIL TAXES

MANILA, March 25 (Bernama-PNA) -- Philippines President Ferdinand R. Marcos Jr. on Wednesday signed into law Republic Act 12316, granting the executive emergency powers to temporarily suspend or reduce excise taxes on petroleum products in response to surging global oil prices due to the West Asia conflict, Philippine News Agency (PNA) reported.

The measure, a consolidation of Senate Bill No. 1823 and House Bill No. 8220, takes effect immediately upon publication.

It amends Section 148 of the National Internal Revenue Code of 1997, allowing the President, in coordination with the Department of Energy (DOE) and upon recommendation of the Development Budget Coordination Committee (DBCC), to adjust excise taxes when the average Dubai crude oil price based on Mean of Platts Singapore (MOPS), reaches or exceeds US$80 per barrel for one month preceding issuance of the order.

The law permits both full suspension and partial reduction of excise taxes on specific petroleum products and limits the exercise of this authority until Dec 31, 2028.

Under the act, oil companies are required to submit monthly cost-component reports of petroleum products to the DOE, which will forward them to Congress and DBCC.

The Bureau of Internal Revenue and the Bureau of Customs are also mandated to provide monthly updates for value-added tax computation purposes.

RA 12316 requires the President to submit reports to both houses of Congress detailing the factual basis and policy objectives of the suspension or reduction, the estimated foregone revenues and expected social benefits, as well as the likely impact on inflation, fuel prices and the broader economy.

Earlier, Marcos said the executive will have to study “when is the best time to use that new authority,” citing conditions within the law that have to be satisfied.

Marcos’ signature comes amid rising global oil costs and follows his recent declaration of a national energy emergency to allow faster government intervention in supply and pricing.

Officials said the law will provide authorities more tools to stabilise domestic fuel prices and mitigate inflationary pressures on households and businesses.

-- BERNAMA-PNA