EL
Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

: BILL NO. 3325 _

HOUS

Introduced by Representative Jefferson F, Khonghun

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

EXPLANATORY NOTE

Relentiess oi! price hikes can slow down the growth of an economy, and the
poor have always been the worst-hit. To address this, I am proposing a bill
secking to s id the imposition of cxcise tax on petrolcum products duc to
frequent oi! price hike.

Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration
and Inclusion (TRAIN) law, was signed into law by former president Rodrigo
Duterte on er 19, 2017. Per the Department of Finance, it is the th
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
capahility of onr 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, 2922 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 cf 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 sought.

'hitps/Mlegavy senate. gov ph/press_release/2022/0308_drilon! asp
bid.



sane

~~ 3325

AN ACT SUSPENDING THE IMPOSITION OF EXCISE TAX
‘ON MOTOR FUEL AND OTHEF: PETROLEUM PRODUCTS
be it enacted by the Senate and 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 products involved in the
manufacturing and production thereof, as enumerated under Sec. 148 of

National Internal Revenue Code of the

lippines, as amended,

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 fer Acceleration and inclusion Law, and

under BIR Revenue Regulation No. 2-2018, as well as other laws, executive

scofar 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

wed in the manufacturing and production of yr fuel.

SECTION 3. Separability Clause. ~ Should any part of this Act be
declared unconstitutional or invalic, 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,

proclam

ions, rules and regulations, and issuances, or parts thereof which

are inconsistent with the provisions of this Act, are hereby repealed, amended


or modified accordingly.

SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days

1 tte or in

wing the compl of its p ion in the O

newspaper of general circulation

Approved,