Temporary 10 percent added duty on oil imports generates P1.49B
The additional 10-percent import duty temporarily slapped on some oil products amid the COVID-19 crisis so far raised P1.49 billion in additional revenues for the government.
Data provided by Finance Secretary Carlos G. Dominguez III on Tuesday showed that the implementation of Executive Order (EO) No. 113 generated an additional P1.1 billion in tariff and P130.1 million in value-added tax (VAT) from imported crude oil since May.
Issued by President Rodrigo Duterte last month, EO 113 temporarily modified the rates levied on imported crude petroleum oil and refined petroleum products effective May 6.
These higher rates shall remain effective as long as Republic Act (RA) No. 11469 or the Bayanihan to Heal as One Act is being implemented, or when global oil prices increase, whichever comes first.
These additional levies were on top of existing most favored nation (MFN) and preferential import duties.
For liquefied petroleum gas (LPG), the additional import tariff raised P252.7 million, and another P30.3 million from VAT.
In the case of naphtha products, the higher duties under EO 113 generated P2,969, as well as P356.28 from VAT—relatively smaller amounts covering shipments that arrived in May.
Across oil imports covered by EO 113, additional collections in May amounted to P973.9 billion, while the take so far this month was P523.2 billion.
Earlier government estimates showed that up to P20 billion in additional tax revenues may be collected through EO 113.
The Customs Modernization and Tariff Act (CMTA) had empowered the President to adjust oil import duties “in the interest of general welfare and natural security,” EO 113 noted.
In this case, the COVID-19 pandemic required more money to fund the Bayanihan Law’s social amelioration program (SAP) and other safety nets extended to vulnerable sectors, including poor households and displaced workers.
TSB
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