Task force versus oil smuggling formed

As the implementation of the nationwide fuel marking system draws nearer, the Bureau of Customs has formed a task force that will spearhead moves to combat oil smuggling.

In a statement Monday, the BOC said that its fuel marking task force will be chaired by the agency’s enforcement group and co-chaired by the intelligence group.

The task force will be in-charge of formulating related administrative issuances as well as coordinate with the other agencies that will also implement the mandatory fuel marking program, namely the Department of Finance and the Department of Budget and Management-Procurement Service (DBM-PS).

“The fuel marking is required on all petroleum products that are refined, manufactured, or imported into the Philippines that are subject to the payment of duties and taxes such as but not limited to gasoline, denatured alcohol used for motive power, kerosene, and diesel fuel oil after the taxes and duties have been paid,” Customs Commissioner Isidro S. Lapeña said.

Citing Department of Finance estimates, the BOC said that implementing the fuel marking system starting this year will plug the foregone revenues from excise and value-added taxes due to oil smuggling, worth P26.9 billion in 2016.

The program will add P20-40 billion to the collections of the BOC and the Bureau of Internal Revenue when implemented in the next five years.

The Tax Reform for Acceleration and Inclusion Act Law provided for the implementation of the fuel marking program, as well as the corresponding offenses and penalties to be slapped against violators.