CLARK FREEPORT—With global oil prices on the decline, the government is reviewing the temporary suspension of the scheduled hike in oil excise taxes already green-lit by President Duterte, according to Finance Secretary Carlos G. Dominguez III.
“We are currently again reviewing it. This is a totally unexpected development, although it’s a pleasant development. I hope we have more developments like this, but we are currently reviewing the situation, especially now that prices have gone down to [about] $55 per barrel,” Dominguez told reporters on the sidelines of the third leg of the Sulong Pilipinas 2018-Philippine Development Forum here on Monday.
Based on the Tax Reform for Acceleration and Inclusion (TRAIN) Act, the government can provide relief if global prices average $80 a barrel or above during a three-month period.
In the last few months, oil prices peaked to new time highs albeit below the threshold set by the law. Inflation reared its ugly head, and as a result forced economic managers to recommend to the President to temporarily suspend the increase in oil excise taxes at least during the first quarter of 2019.
“We [were] trying to figure out a way of violating the law, actually. So it’s [still] under review at the moment,” Dominguez said.
The Office of the Executive Secretary this month released a memorandum stating that President Duterte had approved the recommendation to suspend the second installment of the increase in excise taxes.
But for Dominguez, “we have to look at the facts on the ground.”