MANILA — Finance Secretary Frederick Go has defended the Philippine government's decision to implement a limited suspension of fuel excise taxes, describing the move as "balanced and fiscally responsible" in response to economic pressures.
In a statement issued Tuesday, Go explained that the Development Budget Coordination Committee (DBCC) recommended restricting the tax suspension to kerosene and liquefied petroleum gas (LPG), citing their critical importance to low-income households. The targeted approach, according to officials, prioritizes household energy needs while maintaining fiscal stability.
"On the other hand, the DBCC has determined that suspending excise taxes on diesel and gasoline would not likely provide meaningful relief, as any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics," Go stated.
President Ferdinand Marcos Jr. approved the suspension of excise taxes on kerosene and LPG on Monday, exercising emergency powers granted by recent legislation. The decision comes more than two weeks after the law authorizing such adjustments was signed into effect.
However, the selective approach has drawn criticism for excluding diesel and gasoline, which carry significantly higher excise taxes. Diesel currently faces a P6 per liter tax, while gasoline is taxed at P10 per liter. In contrast, kerosene carries a P5.65 per liter tax and LPG is taxed at P3.36 per kilogram.
The government's decision reflects a calculated approach to balancing economic relief with fiscal responsibility, as officials navigate complex market dynamics affecting fuel prices across the archipelago.