JAKARTA - The Philippine government is preparing a quick move to mitigate the impact of the surge in world oil prices. The Philippine House of Representatives this week is scheduled to approve a draft law that gives President Ferdinand Marcos Jr. the authority to temporarily reduce or suspend taxes on petroleum products.
Launching the Philippine News Agency (PNA), Monday, March 16, House Bill No. 8418 was given an urgent status by the president so that assistance could be carried out without waiting for a new legislative process that usually takes a long time in a crisis.
The leader of the Philippine House of Representatives, Ferdinand Alexander "Sandro" Marcos, was still quoted from PNA, saying the draft was made to face a situation when crises abroad quickly turned into a burden at home, from prices at gas stations, public transportation fares, prices of goods in the market, to household costs.
According to Ferdinand, the bill provides a time-limited legal way for the president to suppress the impact of rising oil prices before spreading further to transportation tariffs, food prices, and other basic expenses. The Speaker of the Philippine House of Representatives Faustino "Bojie" Dy III also encouraged this policy as part of efforts to maintain the government's readiness to face price spikes due to global oil supply disruptions.
In the draft, the president can only use this authority on the recommendation of the Development Budget Coordination Committee and coordinate with the Minister of Energy. According to PNA, one of the triggers is when the average price of Dubai crude oil reaches or exceeds US$80 per barrel for a full month. Another trigger applies if a national emergency or disaster causes an extraordinary spike in domestic fuel prices.
The bill also limits the period of suspension or reduction of taxes for a maximum of six months, with a total accumulation of no more than one calendar year. This authority only applies until December 31, 2028.
The Philippine government is also required to report the policy basis, potential loss of state revenue, and its impact on inflation, fuel prices, and other economic activities to the House of Representatives and the Senate within 15 days after the rules are published, and then every month thereafter.
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