Should Excise Tax Be Suspended? Presidential Candidates Answer in Comelec Debate 2022
COMELEC DEBATE 2022 – Here’s what presidential bets had to say on whether they were in favor of suspending excise taxes on fuel or not.
Excise tax is a legislated tax on goods or services like fuel, cigarettes, soda, and alcoholic beverages. Philippine President Rodrigo Roa Duterte recently rejected the Department of Finance’s (DOF) call to suspend the excise tax amid soaring pump prices due to Russia’s invasion of Ukraine.
DOF said cutting excise tax collection would mean that the government could lose P105-billion worth of income. The budget department said the government should instead provide P200/month per household for 1 year to poor families.
This topic was discussed during Commissions on Elections (COMELEC) PiliPinas debates for presidential candidates on Saturday, March 19. Here’s what they had to say on whether they’re in favor of suspending fuel tax or not. Former senator Bongbong Marcos did not join the debate.
Manila City Mayor Francisco “Isko” Moreno brought up the unpaid estate taxes of the Marcoses that’s about P203 billion.
“Yes, if I could collect the P203 billion estate tax from one family and I cut the taxes on fuel and electricity at 50%, we will lose P65 billion. Minus that, I still have lots on funds that we could return to the people,” he said.
“It’s a matter of fiscal management and certainty of law,” he added.
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Ka Leody de Guzman is also in favor of suspending excise tax. The labor leader offered a radical solution: taxing the ultra-rich.
“So that consumers could be saved from oil price increases. Outside that, we should impose taxes on the wealthy so that the national coffers will be larger…”
“I also agree that we should go after that P203 billion,” he said.
Senator Manny Pacquiao offered pros and cons if the government suspends excise taxes amid the soaring oil price. He said, “If we remove it, benefits abound. If not, the income from excise tax collection should be used to subsidize our motorists.”
Senator Panfilo “Ping” Lacson said the suspension of excise taxes should only be temporary. He said, “the savings will come down to P10 in gasoline prices, P6 for crude oil, P5 for diesel, and P3 for kerosene. Even if it’s just for three months.”
“Let’s raise the threshold from $80 per barrel, let’s make it $90 per barrel. It seems that the Department of Finance thinks excise taxes would be permanently suspended. The foregone revenues won’t be as large as they anticipate,” he added.
Jose Montemayor is also in favor of the suspension of excise taxes. He said, “I don’t know why we’re having a hard time giving in to the pleas of poor Filipinos. They’re just looking for a reprieve of P210 billion when the government gave foreign taxpayers relief from the CREATE law, from 30% to 25%.”
“I’m in favor of suspending it temporarily for the public’s welfare,” he added.
VP Leni Robredo was not able to give her thoughts on the matter. Other presidential candidates were also not able to respond.
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