Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

“TWENTIETH CONGRESS
Frist Regular Session

House Bil No, 1228

Introduced by Representative Jefferson F. Khonghun

AN ACT SUSPENDING THE IMPOSITION OF EXCISE TAX
ON MOTOR FUEL AND OTHER PETROLEUM PRODUCTS

EXPLANATORY NOTE

Relentless oil price hikes can slowdown the growth of an economy, and the poor
have always been the worst-hit. To address this, I am proposing a bill seeking to
suspend the imposition of excise tax on petroleum products due to frequent oil price
hike.

Republic Act No.10963, otherwise known as the Tax Reform for Accelerations and
Inclusion (TRAIN) law, was signed into law by former president Rodrigo Duterte on
December 19,2017. Per the Department of Finance, it is the thrust of the said law
to correct the previous tax system regarding the imposition of income tax. TRAIN
law also imposes various kinds of taxes on goods, and services, including the
imposition of excise tax. The proceeds of this revenue-raising mechanism posit as.
a solution to poverty.

While we consider that taxation is the lifeblood of the government, that a state
cannot thrive without the contributions of its citizens, however, it remains a burden
to our citizens. The prices of today’s goods and services are at an all-time high,
couple the same with the payment of taxes, hurt the financial capability of our
citizens, especially our less-fortunate members.

One particular commodity that upsets consumers is petroleum. The consistent
spike in the price of oil also means the continued price hike of all other goods and
services. Regardless of the factors surrounding the same, it becomes imperative to
address the grave effects of rising oil prices on basic commodities and services.

On March 8, 2022 via press release, Hon. Franklin M. Drilon opined that he “does
not see any legal impediment that would prevent the Department of Finance and
the Bureau of Internal Revenue from suspending the collection of fuel excise taxes


to cushion the impact of astronomical increases in the prices of petroleum
products.” Being one with the sentiment of the former senator, the purpose of this
bill is simply, “to mitigate the impact of high oil prices on the cost of goods and
living expenses of the ordinary Filipino.”

This legislation does not seek to permanently suspend the imposition of excise tax
on fuel products. Nevertheless, this bill purports a suspension of the said tax until
such time that the economy of the country stabilizes or transitions to a possible
“new normal”, An implementation of this bill would definitely lend a helping hand
to the ordinary Filipino, thereby embodying the slogan, “those who have less in life
should have more in law.”

In view of the foregoing, the approval of this bill is earnestly sougt



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘TWENTIETH CONGRESS
Frist Regular Session

House Bill No.1228

Introduced by Representative Jefferson F. Khonghun

AN ACT SUSPENDING THE IMPOSITION OF EXCISE TAX
ON MOTOR FUEL AND OTHER PETROLEUM PRODUCTS

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Suspension on the Imposition of Excise Tax on Fuel and
Other Petroleum Products. - The imposition of excise tax on motor fuel,
particularly leaded and unleaded premium gasoline, aviation turbo jet fuel,
kerosene, and diesel, fuel oil, and other petroleum product involved in the
manufacturing and production thereof, as enumerated under Sec. 148 of
National Internal Revenue Code of the Philippines, as amended, is hereby
suspended.

Accordingly, the provisions concerning the imposition of excise tax on the
said motor fuel and petroleum products under Republic Act no. 10963,
otherwise known as the Tax Reform for Acceleration and Inclusion Law, and
under BIR Revenue Regulation No. 2-2018, as well as other laws, executive
orders, and decrees, insofar as they impose excise tax on the said products
are likewise suspended from implementation.

SECTION 2. Limitations. ~ The suspension of the imposition of excise tax
on the said motor fuel and other petroleum products shall not bar the
imposition of customs taxes and duties and excise tax on imported
petroleum products which are not directly used to provide power to the
motor in a vehicle or involved in the manufacturing and production of motor
fuel.

SECTION 3. Separability Clause. - Should any part of this Act be declared


unconstitutional or invalid, other provisions hereof that are not affected
thereby shall continue to be in full force and effect.

SECTION 4. Repealing Clause. ~ All laws, decrees, executive orders,
proclamations, rules and regulations, issuances, or parts thereof which are
inconsistent with the provisions of this Act, are hereby repealed, amended or
modified accordingly.

SECTION 5. /:/fectivily. - This Act shall take effect fifteen (15) days

following the completion of its publication in the Official Gazzette or in
newspaper of general circulation.

Approved,