Seaoil Philippines Inc., the largest independent oil firm in the country, welcomed the planned excise taxes on fuel but called for the implementation of a fuel marking system to address smuggling.
“We will not have a problem with excise tax,” Seaoil chief executive Glenn Yu told reporters, saying it would be best to follow the law no matter its final version.
“We are one of the largest tax payers in the country,” he added.
Considering the relatively low prices of fuel these days, he said the additional tax would not significantly dampen demand for petroleum products.
The Duterte administration’s proposed comprehensive tax reform program (CTRP) — intended to bankroll a massive infrastructure drive — includes excise tax on fuels that is expected to slap a P6 levy on every liter of diesel.
“But we hope that before implementing an excise tax, the government would implement a fuel marking system — in whatever scheme is deemed best,” Yu said. “This would address concerns about the smuggling of fuel into the country.”
The Bureau of Customs had said it could collect an additional P5 billion in a year through a program that tracks the movement of diesel and kerosene supplies entering the country tax-free.