Recto proposes oil tax fund for Mindoro oil spill response

House Deputy Speaker Ralph Recto proposed using a fraction of annual oil tax revenues to fund the cleanup and aid for those affected by the Mindoro oil spill.

He highlighted that a single day's collection from oil taxes, amounting to P1 billion, could significantly jumpstart abatement and alleviation efforts.

The oil spill, originating from the sunken MT Princess Empress, has impacted the livelihoods and daily lives of over 99,000 individuals in Oriental Mindoro.

Recto cited that the government collects over P380 billion annually from crude oil and petroleum products, making the allocation for disaster response a small portion of total collections.

He argued that an excise tax is slapped on oil products because they are viewed as harmful, and the revenue is meant to compensate for damages to health and the environment.

A House of Representatives think-tank study showed the Bureau of Customs collected P372 billion in duties and taxes on crude oil and petroleum products in 2021, with the Bureau of Internal Revenue adding P7.4 billion in excise tax.