HIGHER fuel taxes do not apply to old stocks still sold to consumers, an official of the Department of Energy (DoE) told reporters on Wednesday.
“We emphasized that the old stocks that are already released in the refinery and in the depot with retail outlets should not be levied with the new excise tax,” Energy Undersecretary Felix William Fuentebella said.
Fuentebella added the DoE was closely monitoring the inventory levels of oil firms to ensure that consumers were protected and that no one would take advantage of the new excise tax on petroleum products.
Once the new excise tax rate is applied, the DoE said prices of petroleum products should increase at least 15 days after the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Act on Monday.
Prior to the press briefing, the DoE held a coordination meeting on Wednesday morning with oil companies, which agreed to submit their stock inventories with the cutoff date of December 31.
The DoE and oil companies also discussed how they could help each other to ensure the proper implementation of the new tax law, which should be in accordance with the advisories the DoE sent out in December.
In a television interview, Fuentebella clarified the difference between excise tax and VAT.
Speaking in Filipino, Fuentebella said excise taxes were paid to the manufacturer of petroleum products. Consumers pay for VAT, which is imposed on these oil products that are distributed to retail stations.
Under TRAIN or Republic Act 10963, excise taxes on petroleum products are as follows:
Diesel – P1-P2.50
Gasoline – P7
Kerosene – P3
LPG – P1
WITH A REPORT FROM KAROL JOSEF LUCENA