MANILA — President Ferdinand R. Marcos Jr. on Friday, September 25, issued Executive Order (EO) No. 125 temporarily suspending excise taxes on liquefied petroleum gas (LPG) and kerosene amid elevated global crude oil prices.
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| Photo courtesy: Presidential Communications Office (PCO) |
The measure fully suspends the excise taxes on LPG, except when used as raw material for petrochemical production or for motive power, and on kerosene, except when used as aviation fuel.
The order followed a recommendation from the Development Budget Coordination Committee (DBCC) after the Department of Energy (DOE) certified that the average Dubai crude oil price based on the Mean of Platts Singapore (MOPS) had reached US$99.41 per barrel.
The average price exceeded the threshold that allows the President to suspend or reduce fuel excise taxes under specified conditions.
EO 125, titled “Temporarily Suspending the Excise Taxes on Specific Petroleum Products,” directs the DBCC, in coordination with the DOE, to review the implementation within 15 days and every month thereafter.
The DBCC is also required to submit reports to the House of Representatives and Senate, which will serve as a basis for recommending whether the suspension should continue, be modified, extended or terminated.
The DOE and Department of Finance (DOF), through the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), were likewise ordered to conduct an inventory of existing LPG and kerosene stocks when the order takes effect.
According to the executive order, the suspension may last for up to three months, subject to conditions stated in the measure.
The excise tax rates will automatically revert once the conditions for the suspension are no longer met or upon the expiration of the prescribed period, whichever comes first.
The order takes effect upon publication in the Official Gazette or in a newspaper of general circulation.
— The Summit Express
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