Consumers would have had to pay over P2.5 billion extra had the government not carefully monitored the implementation of the Tax Reform of Acceleration and Inclusion (Train) law, the Energy department claimed in Friday.
“To emphasize, the Department of Energy has saved the consuming public approximately P2.7 billion in what could have been improperly collected,” Energy Assistant Secretary Leonido Pulido 3rd said in a press briefing.
Energy Assistant Secretary Leonido Pulido III and Oil Industry Management Bureau Director Rino Abad, answer questions from the media on the Train law’s impact on oil industry during a press briefing. PHOTO BY ROGER RAÑADA
In particular, consumers would have had to shell out P2.649 billion at fuel pumps and another P54.8 billion for liquefied petroleum gas (LPG) products, the department said.
The computation, Pulido said, was based on a review of existing inventories and demand as of December 31, 2017.
The Train law, which raised taxes on fuel in addition to other goods in exchange for lower personal income taxes, took effect at the start of this year.
The Energy department also cited the implementation of safeguard measures such as public advisories, random inspections and the issuance of show-cause orders to retail outlets that had raised prices before January 15, which was when new stocks bought only after the law took effect were expected to be made available to consumers.
Oil companies, in particular, were directed to submit notarized inventory reports on per depot and per product basis, impose the excise tax under Train only after last year’s stocks were fully exhausted, and submit daily withdrawal summaries starting January 1, 2018 until the depletion of declared inventories as of December 31, 2017.
“We implemented a lot of initiatives for the smooth implementation of [the]Train law, because we did not want consumers to be compromised. The goal is to protect everyone, especially the consumers,” Secretary Alfonso Cusi said.
The Energy department is also in discussions with several oil companies for the provision, renewal or expansion of discounts offered to public utility vehicle drivers.
Lagareon, J. S. (February 3, 2018). DoE: Tighter tax watch saved consumers P2.7B. The Manila Times. Retrieved from http://www.manilatimes.net/doe-tighter-tax-watch-saved-consumers-p2-7b/377993/