AS crude prices continue to go down in the world market, an industry player is pushing for the imposition of a special tax on oil products.
Fernando Martinez, president of independent player Eastern Petroleum, said the government should seriously consider his proposal to impose P1 per liter special tax on oil products.
“I have a controversial proposal but very timely. We should tap P1 per liter special tax on oil for infrastructure projects,” Martinez told reporters.
In justifying his proposal, Martinez said the fund to be collected from the special tax could be used for the government’s infrastructure projects.
“The tax will allow the government to build roads and bridges, and freeways with no tolls,” he said.
He said the government could raise at least P10 billion to P15 billion a year from the special tax.
“The infrastructure should be free of charge as the budget was sourced from the taxes paid by consumers,” he added.
He recalled that in 1987, the government of the late President Corazon C. Aquino
imposed a P1 per liter levy on gasoline.
To make sure that the fund will be properly spent, Martinez proposed that consumers should have a representation in the group that will administer the fund.
Martinez, however, said that the tax should only be collected if global oil prices stay below $100 per barrel.
“Once oil prices reach $100 per barrel and above, the tax collection should be automatically stopped,” he said.