Government Suspends Upcoming Fuel Excise Taxes To Keep Inflation In Check
The Department of Finance has confirmed on Sunday that it will suspend the implementation of the second tranche of fuel excise taxes scheduled early next year
The suspension of the fuel excise will keep inflaton in check. While it may not bring down the prices of petroleum products today, it could help the government manage the public’s expectations towards inflation.
In an interview, the Department of Finance (DOF) Asec. Tony Lambino said some Filipinos blame excise taxes on fuel for the rising prices of goods. He further clarified that taxes imposed on petroleum products only contribute 25 percent o. f its total increase, te 75% is due to the rising crude oil price globally.
“Kailangan po natin i-manage ang expectations ng ating mga kababayan, dahil ‘yung contribution ng oil excise sa pagtaas ng presyo, akala ng marami ‘yan ang rason,” Lambino said.
(Translation: We have to manage the expectation of our countrymen. Many thought that the oil excise is the primary contributor to the increasing prices of goods.)
Despite that, Lambino also empathized with the consumers due to the psychological factor brought by inflation.
“May psychological factor din po kasi ang inflation. We can also anchor those expectations better pag naanunsyo ng maaga na hindi muna itataas ang excise taxes,” Lambino said.
(Translation: Inflation also had a psychological factor. We can anchor those expectations better if we announce the suspesion of excise taxes earlier.)
It is also unlikely for world cruce price to go below the $80 mark ber barrel due to the expected global demand during the winter season and the geopolitical issues that hinder oil-producing countries to generate more products.
[Source 1, 2]