Senator: Remove VAT on fuel products

A SENATOR on Sunday called on the government to abolish value-added tax (VAT) on oil products to address rising fuel costs and its impacts on the agricultural sector.

“The [rising fuel costs] will not only affect the fisherfolk. If they stop fishing, the food prices will also increase,” Senator Maria Imelda Josefa R. Marcos said in a press statement, pointing out that coastal areas have been impacted by the oil shock.

Ms. Marcos specifically pushed for the removal of VAT on petroleum products for both municipal fisherfolk and commercial fishers registered under the Bureau of Fisheries and Aquatic Resources.

The conflict in the Middle East has sparked discussions on abolishing VAT and other tax relief measures such as cutting or temporarily suspending the excise tax on petroleum products.

Separately, Ms. Marcos pushed to raise the income tax exemption for workers earning P250,000 to P500,000 a year under the Senate Bill No. 2005. She also proposed to increase the ceiling of non-taxable benefits such as bonuses and the 13^th month pay.

In March, Congress granted President Ferdinand R. Marcos, Jr. emergency powers to either cut or suspend fuel excise tax through the Republic Act No. 12316 to address the oil shock that has impacted the transportation and agriculture sector since the war began in Feb. 28.

Mr. Marcos has yet to decide on the suspension or cutting of excise tax following his meeting with the Development Budget Coordination Committee.

Previously, Senator Panfilo M. Lacson warned that the country could lose P119.326 billion in revenues from removing VAT on fuel products.

With the suspension of excise tax considered, Mr. Lacson said this amount could reach up to P320 billion in foregone revenue. — Kaela Patricia B. Gabriel