MANILA — The House of Representatives is preparing to pass this week a bill that would give President Ferdinand Marcos Jr. the authority to temporarily reduce or suspend excise taxes on petroleum products.
House Bill No. 8418, which the President has certified as urgent, includes strict conditions and time limits so that tax relief can be implemented swiftly without waiting for a new law during emergencies.
House Majority Leader Ferdinand Alexander “Sandro” Marcos of Ilocos Norte explained that the measure is designed to respond quickly when global events push oil prices higher, affecting transportation, goods, and household expenses.
“This bill allows the President to legally and promptly cut or suspend fuel excise taxes, providing relief before rising oil prices cascade into higher fares, food costs, and everyday expenses,” Marcos said Sunday evening.
Speaker Faustino “Bojie” Dy III and Marcos emphasized that the legislation is part of the House’s efforts to prepare the government for sudden spikes in fuel prices due to international disruptions in oil supply.
The bill authorizes the President, in coordination with the Secretary of Energy and upon recommendation of the Development Budget Coordination Committee, to suspend or reduce excise taxes on fuel under clearly defined conditions.
One key trigger occurs when the average Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds USD 80 per barrel for a month prior to the tax action. Another trigger applies when a national emergency or calamity causes sharp increases in domestic fuel prices, as certified by the Energy Secretary.
HB 8418 allows partial or full suspension of excise taxes and limits the period of action to six months, renewable only through Congressional approval. The total period of suspension or reduction cannot exceed one calendar year. Once conditions improve, excise rates are automatically restored.
The measure also requires the President, through the Finance Secretary, to submit detailed reports to Congress within 15 days of implementation and every month thereafter, outlining the rationale, foregone revenue, and potential economic effects.
Agencies including the Departments of Finance, Budget, Energy, Planning, and the Bangko Sentral ng Pilipinas, along with the BIR and Customs, must issue implementing rules within 15 days of the law taking effect.
elamigo/xf
