DOE to study higher fuel excise tax proposalThe Department of Energy (DOE) will conduct a study of the proposed additional excise tax to be imposed on gasoline and diesel because it will lead to an increase in pump prices, particularly since fuel will also be subjected to 12 percent value-added tax (VAT). The previous administration said the government would raise P132-billion additional revenue if the current excise tax on fuels would be raised. It further said a P10-per-liter proposed tax rate was derived by indexing the existing excise tax rate of gasoline (P4.35/liter) to cumulative inflation factor of 2.37 (1997-2014). If passed, diesel tax alone will generate about P60 billion in annual revenue for the government, he said. “There should be [at least] P4 excise tax on diesel,” Diokno said, referring to the lower priced fuel product.

Source: Manila Times July 28, 2016 12:45 UTC