DOE Rolls Out Guidelines for Oil Tax Hike Implementation
The Department of Energy (DOE) has released its guidelines on the second tranche of excise tax hike on fuel products so that it “will be correctly implemented.”
According to DOE Undersecretary Felix William Fuentebella, the government is requiring oil companies to submit operations report on a daily, monthly, and annual basis as part of the Tax Reform for Acceleration and Inclusion (TRAIN) Law—which took effect last year–with the first annual report expected on Tuesday, January 8.
“We required the oil companies to submit the following: the daily operations report for their inventory, their monthly report, and their annual report for the closing of December 31 (2018) stocks,” Fuentebella said in a press briefing.
Fuentebella added that the reports from the petroleum companies will ensure that the increase in oil excise tax this year will be implemented on new inventories and not on old stocks of fuel products, as one solon fears could happen.
On the first year of the TRAIN Law’s implementation, the government imposed a PHP1 per kilogram excise tax on liquefied petroleum gas (LPG), PHP2.50 per liter for diesel, and PHP7 per liter for gasoline.
For the second tranche of the increase, which will take effect later this month, an additional PHP2 per liter will be slapped on diesel and gasoline products, PHP1 per liter for kerosene, and PHP1 per kilogram on LPG.
“For retail stations, we will require posting when they will implement the excise tax for gas, diesel, and kerosene. Each has its own inventory,” Fuentebella added.
DOE Secretary Alfonso Cusi earlier reminded oil firms that they should not impose the new excise tax on old inventories, which is good for 15 to 30 days.