HOUSE Ways and Means Committee Chairperson and Marikina 2nd District Representative Miro Quimbo is pushing for an immediate two-month suspension of the value-added tax (VAT) on petroleum products as an additional measure to help mitigate the impact of the ongoing oil crisis.
“A two-month suspension of VAT on oil products will ease the burden on Filipinos, providing immediate breathing room while the government works on longer-term solutions for this crisis,” Quimbo said.
Quimbo said the proposal is a feasible intervention, with expected benefits to consumers likely to outweigh potential government revenue losses, particularly amid uncertainty stemming from the conflict in the Middle East.
He added that any foregone revenues could be offset by gains already realized in the first quarter, making the measure a timely and calibrated response.
During the Legislative Energy Action and Development (LEAD) Joint Committee hearing, Quimbo said the House of Representatives is also open to measures that could help curb fuel price surges, including the suspension of VAT.
“We strongly believe that if you reach a particular threshold on [the] collection ng VAT, baka pwede na tayong mag-suspend ng (collection), kasi may windfall na tayo,” he added.
The veteran lawmaker said legislation would be needed to implement the proposal and that the House would take it up once it resumes in 2 weeks, but technical and staff work will begin shortly.
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