Palace Supports Economic Managers’ Decision To Push Through Second Increase Of Fuel Tax
FUEL TAX – The country’s economic managers decided to withdraw the suspension and proceed with the second round of fuel tax increase next month.
The Senate previously strong-armed the economic managers’ decision to suspend the tax hike on fuel using the pending 2019 national budget as leverage. Sen. Sherwin Gatchalian noted that the Senate may take extreme measures to compel the executive branch to suspend the said increase in oil products amidst inflationary issues.
Finance Secretary Carlos Dominguez III said that the economic manager’s decided to retract on its earlier proposal to suspend the second tranche of oil excise increase. Dominguez further added that the team now wanted to proceed with the adjustments in lieu of recent declines in global oil prices.
Recently, the Malacañang Palace support’s the economic managers’ decision to proceed with the second excise tax on fuel next month.
A report in Inquirer states that the economic managers had their reasons to withdraw their initial plan to suspend the tax hike despite rising inflation, says Presidential spokesperson Salvador Panelo.
Panelo further said that the managers have further basis to make the decision. He added that they are competent and able to explain themselves to the lawmakers.
The labor groups, however, were dismayed of the Palace’s support, noting that it’s proof of its low regard for the poor people who are mostly affected by the the tax policies of the administration.
As per the report, Dominguez, along with Budget Secretary Benjamin Diokno and Socioeconomic Panning Secretary Ernesto Pernia, decided to push through the hike. They noted the recent decrease in crude prices as the reason for the withdrawal of the suspension.
President Duterte, on the other hand, told the reporters to wait for the outcome of Cabinet meeting which is scheduled this Tuesday (December 4). He further added that the decision may not be confirmed necessarily but he hoped that this will be resolved in the Senate.
Duterte lastly emphasized on the need for his economic managers to speak about the impact of the fuel tax on government projects and the insufficiency of money in government to go on with the projects.
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