Drilon tells DOF, BIR to suspend fuel excise taxes

Senate Minority Leader Franklin Drilon reminded the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) that they have the authority to suspend the collection of fuel excise taxes under the TRAIN Law.

Drilon stated that the Executive department can suspend these taxes to mitigate the impact of high oil prices on Filipinos' cost of living.

He emphasized that the provision in the TRAIN Law should be interpreted broadly, not just for suspending increases but also for the imposition of these taxes.

Drilon recalled that when the TRAIN Law was passed, neither the government nor Congress anticipated events like the Russia-Ukraine conflict.

He added that during the law's discussion, the understanding among senators was that excise tax collection could be suspended if inflation reached the Development Budget Coordination Committee's (DBCC) top estimate or if crude oil prices exceeded $80 per barrel.