Manila: The House of Representatives has advanced a legislative proposal that would allow President Ferdinand R. Marcos Jr. to temporarily suspend or reduce excise taxes on fuel during extraordinary conditions that lead to significant price increases impacting transportation, food, and household expenses. The bill, having passed its second reading, aims to provide the President with the ability to act swiftly in response to global disruptions that cause rapid fuel price spikes.
According to Philippines News Agency, House Majority Leader, Ilocos Norte Rep. Ferdinand Alexander 'Sandro' Marcos, alongside Speaker Faustino 'Bojie' Dy III, emphasized that the bill is designed to enable rapid government intervention when global events lead to increased fuel prices, thereby affecting Filipino families. "This bill gives the President a measured tool to cushion that shock, with clear triggers, clear limits, and clear reporting when the prices of fuel and basic commodities get too high," Marcos stated.
The proposed legislation, encapsulated in House Bill 8418, seeks to amend Section 148 of the National Internal Revenue Code. It would authorize the President to suspend or reduce fuel excise taxes under stringent conditions and time limitations, allowing for timely relief activation without necessitating new legislation during crises.
Marcos and Dy advocated for the bill as part of the House's strategy to prepare the government for price surges linked to international incidents, such as conflict-related disruptions in global oil supply that could lead to increased domestic pump prices and higher costs for essential goods.
During deliberations, Marikina Rep. Miro Quimbo, the chair of the House Committee on Ways and Means, defended the measure, highlighting that the authority granted is not indefinite and is surrounded by safeguards to protect both consumers and fiscal health. The bill stipulates that the President can exercise this authority only upon the Development Budget Coordination Committee's recommendation and in coordination with the Secretary of Energy, contingent on one of two conditions.
The first condition is met when the Dubai crude oil price, as determined by the Mean of Platts Singapore, reaches or surpasses USD80 per barrel for a month immediately preceding the suspension or reduction order. The second condition involves a declared state of national emergency or calamity that leads to extraordinary domestic pump price increases, certified by the Secretary of Energy.
The President's authority to suspend or reduce excise taxes may apply to specific petroleum products and may vary from full suspension to partial reduction, depending on the circumstances and required relief. The measure limits the suspension or reduction duration to six months unless extended or terminated earlier by Congress through a joint resolution, with a total cap of one calendar year.
The bill mandates that any suspension or reduction be lifted once extraordinary conditions subside, with automatic reinstatement of excise tax rates after the period ends. To ensure transparency, it requires the President, via the Secretary of Finance, to report to both legislative chambers within 15 days of the order and monthly thereafter, detailing the factual basis for the action, estimated revenue losses, and anticipated impacts on inflation and economic activity.
Additionally, the bill requires the issuance of implementing rules within 15 days of its effectivity by relevant government departments and agencies to ensure consistent enforcement and clear administrative procedures. The House's urgency in moving the bill reflects Speaker Dy's commitment to equipping the government with policy tools to address real-world shocks that affect families.
"Under Speaker Dy, we are moving with discipline and urgency because the costs that hit families do not wait for politics. Ang trabaho natin (Our job) is to keep options ready, act when the triggers are met, and make sure relief reaches people without delay," Marcos asserted.