Smuggling Of Oil In The Country Increased By Up to 30% Since Train Law Was Implemented
OIL SMUGGLING – Since the TRAIN Law was implemented, more and more oil has been smuggled into the country.
The reformed tax law or ‘TRAIN Law‘ is a tax reform program proposed with intentions to change the taxation system in the country. This includes taxation in fuel products like: LPGs, gasoline, diesel, etc.
Diesel in not taxed as of now, but will apply these new taxes:
P2.50 tax per liter in 2018
P4.50 tax per liter in 2019
P6.00 tax per liter in 2020
Regular and unleaded gasoline will have the following excise taxes:
P7.00 tax per liter in 2018
P9.00 tax per liter in 2019
P10.00 tax per liter in 2020
(These are based on the article from Pinoy Money Talk)
Increase in excise tax could be the reason why oil producers resorted to smuggling.
According to a report Inquirer, the Federation of the Philippine Industries revealed that the country is losing some of its revenue to smuggling.
The FPI appealed to the government that they should tighten up their security and increase efforts in fighting smuggling. Smuggling, they say, costs the country billions of pesos Iost revenue.
The group of industries compared the extent of the revenue loss before and after the tax reform implementation.
Federation of Philippine Industries Chair Jesus Arranza said that prior to TRAIN law, we were losing an estimated P40 billion in revenue to oil smuggling.
It was also reported that amount of revenue lost to oil smuggling increased by 30%. This is why Department of Energy should really pay attention to oil importers for misdeclarion and underdeclaration of products.
That is all there is to it, at least for now, we’ll post updates as soon as we got them.
