BATANGAS 2nd District Representative Ryan S. Recto has joined the administration in calling for the immediate passage of a measure granting the President emergency powers to suspend the excise tax on petroleum products amid escalating tensions in the Middle East.
The measure, titled the “Act Granting the President of the Philippines Power to Suspend or Reduce the Excise Tax on Petroleum Products,” seeks to amend the National Internal Revenue Code to provide the government with a flexible mechanism in shielding Filipino consumers from the inflationary impact of volatile global oil prices.
Given the Philippines’ status as a net importer of petroleum, these geopolitical tensions often translate directly into sudden price spikes at local pumps which directly affect the cost of transportation and basic commodities.
“The current statutory excise tax regime imposes a fixed per-liter tax that provides a stable revenue stream but lacks the flexibility to mitigate the sudden and severe inflationary impact of global price volatility,” Recto stated in the bill’s explanatory note. He further noted that previous safeguard mechanisms under the TRAIN Act have largely expired, leaving the government without a direct tool to cushion economic shocks during international crises.
House Bill No. 5961 is currently awaiting deliberation by the Committee on Ways and Means.
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