Duterte rejects fuel excise tax suspension

President Rodrigo Duterte rejected calls to suspend the excise tax on fuel products, approving the Department of Finance's recommendation to continue collecting them.

The President's decision was based on the recommendations of Cabinet secretaries after a series of meetings.

Finance Secretary Carlos Dominguez III warned that suspending fuel excise tax collection would reduce government revenues by PHP105.9 billion in 2022, with projected losses totaling PHP1.76 trillion over 10 years.

Dominguez also stated that the fuel excise tax must be retained because the government has already budgeted it for salaries of school teachers, the "Build, Build, Build" program, and other expenses.

The government is expecting to collect P147 billion in taxes this year from fuel products, of which P131.4 billion is from excise taxes, with the rest from value-added tax (VAT) imposed on oil imports.

Duterte's decision follows a previous stance by the DOF opposing the suspension due to significant revenue loss which could impact COVID-19 recovery funds.

In addition to rejecting the fuel tax suspension, Duterte approved extending the P200 in monthly aid to poor families for a year.