Leyte Representative Ferdinand Martin Romualdez has expressed strong approval for the recent advancement of a legislative proposal that would empower President Ferdinand Marcos Jr. to temporarily suspend or reduce excise taxes on petroleum products under specific conditions. This development marks a significant step in addressing ongoing oil price crises and providing much-needed relief to the public, particularly vulnerable and low-income sectors.
Legislative Progress and Economic Impact
Romualdez highlighted that the bill, known as House Bill No. 5779, is among 15 proposed laws and two joint resolutions currently under discussion by the House Committee on Ways and Means. He emphasized that granting the President this authority would enable a faster and more effective response to fluctuating oil prices, which have been a persistent concern for consumers and businesses alike.
Potential Price Reductions and Public Benefits
According to Romualdez, suspending or reducing the excise tax could lead to a substantial decrease in retail oil prices, estimated at approximately P6 to P10 per liter. This reduction is expected to alleviate financial strain on households and industries, fostering economic stability during periods of market uncertainty.
In his proposal, Romualdez advocated for the complete removal of excise taxes on petroleum products to ensure long-term public relief. However, he also acknowledged the government's reliance on billions of pesos in excise tax collections to fund essential social services, underscoring the need for a balanced approach that considers both immediate economic needs and ongoing fiscal responsibilities.
Transparency and Corporate Accountability
Romualdez further called on oil companies to disclose the volume of their current inventory that has already been subjected to excise tax payments. He stressed the importance of clear communication from these companies regarding which stocks will be sold with excise taxes applied and which incoming supplies will be sold without them. This transparency is crucial to properly guide the public and ensure that any tax suspensions are implemented effectively and fairly.
The legislative move reflects ongoing efforts to mitigate the impact of global oil market volatility on local economies, with Romualdez positioning the bill as a proactive measure to safeguard public welfare and promote economic resilience in challenging times.
