- Senate Bill No. 1935 proposes automatic suspension of the 12% VAT and excise taxes on refined and manufactured mineral oils and motor fuels when Dubai crude oil prices reach or exceed US$80 per barrel.
- The law would take effect 15 days after publication.
- Current excise taxes are PHP 10 per litre for unleaded gasoline and PHP 6 per litre for diesel, with some fuel imports for international shipping or air transport already VAT-exempt.
- Business and labor groups support exempting electricity sales from VAT to lower costs and boost economic activity.
- An economist cautions that removing VAT and excise taxes on fuel could lead to a PHP 300 billion revenue loss.
Source: bdblaw.com.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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