Bill Proposes Presidential Power to Suspend Fuel Excise Tax During Crises
In a significant legislative move, House Ways and Means Committee Chair and Marikina City 2nd District Representative Miro Quimbo has introduced House Bill 8257. This proposed legislation aims to empower the President to suspend or reduce excise taxes on petroleum products during times of national or global economic crisis.
Key Provisions of the Bill
The bill seeks to amend Section 148 of the 1997 National Internal Revenue Code. Under the proposed changes, the President, upon recommendation from the Finance Secretary, could implement a suspension if the price of Dubai crude oil reaches $80 per barrel continuously for three months. Alternatively, this authority could be triggered during a declared national emergency or calamity that causes excessive increases in gasoline prices.
The suspension or reduction could be applied to selected petroleum products, with measures effective for up to six months and not exceeding one year. After the suspension period, tax levels would automatically revert to their previous rates.
Reporting Requirements and Economic Impact
According to the bill, the President, through the Finance chief, is obligated to submit a report to Congress within 15 days of implementing the fuel excise tax suspension. Monthly reports must follow, detailing the basis for the suspension, estimated government revenue losses, and anticipated effects on inflation, gasoline prices, and the overall economy.
Context and Background
This legislative initiative follows a statement from President Ferdinand Marcos Jr., who expressed intent to seek congressional authority to reduce excise taxes on petroleum should Dubai crude oil prices hit $80 per barrel amid ongoing tensions in the Middle East. The bill underscores efforts to address economic vulnerabilities and provide relief during fuel price surges.
