DOE: New excise tax not applicable to old fuel supplies
The new excise tax rates under the government’s new tax reform package will not be applicable to old supplies of petroleum products, according to the Department of Energy (DOE).
In a consumer advisory on New Year’s Eve, DOE Assistant Secretary Leonido Pulido III said the new tax rates under the Tax Reform for Acceleration and Inclusion (TRAIN) would only apply to new supply of petroleum products this year.
“The DOE, through the Oil Industry Management Bureau (OIMB) and in coordination with the Department of Finance (DOF), is reminding the public that the new excise tax rates do not apply to the old stocks of petroleum products,” Pulido said. “The OIMB has issued an advisory to petroleum products stakeholders NOT to levy new Excise Tax rates on old stocks, considering that Excise Taxes are levied upon importation and not at the point of sale to the consumers.”
Consequently, retailers of petroleum products should not charge the new excise tax to the consumers, Pulido said.
However, the value-added tax (VAT) under the tax reform package would become effective starting 2018said.
At the same time, the DOE advised consumers of a possible hike for prices of gasoline, diesel and kerosene due to recent oil trading in the international market.
Gasoline prices may increase by around 15 centavos per liter, diesel by around 60 centavos per liter, and kerosene by around 55 centavos per liter, the DOE said in an advisory on Sunday.
“Adjustments on petroleum products are implemented every Tuesday of the weekm,” DOE said. “Please note, however, that these findings may still be affected by the Friday trading activities which will be accessed on Monday.” /atm
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