DOE Visits 115 Fuel Retail Outlets to Ensure Proper Oil Excise Tax Implementation

TAGUIG CITY - The Department of Energy (DOE) conducted its first round of validation activities across various fuel retail outlets (ROs) on 10-11 and 14-15 January 2019. The teams were tasked by Energy Secretary Alfonso G. Cusi to ensure the proper implementation of the second tranche of excise tax on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) Law. 

Sec. Cusi explained, "The second tranche of fuel excise tax will fund crucial infrastructure projects and poverty alleviation programs needed to strengthen our ability to compete globally.”

Validation teams from the DOE-Oil Industry Management Bureau visited a total of 22 ROs across Quezon City, Caloocan and Malabon that have implemented the second tranche of taxes earlier this month. DOE field offices also conducted validation activities, with 57 ROs visited by the Luzon Field Office, 7 by the Visayas Field Office, and 29 by the Mindanao Field Office. 

The DOE teams compared the copies of depot-issued delivery receipts and sales invoices with the official receipts being issued by the ROs to determine the specific excise implementation dates and verify that the outlets are imposing the correct excise tax rates. The DOE teams likewise checked the compliance of the ROs in clearly displaying the one meter by one meter signs which informs the consumers of the implementation date of the additional excise taxes and the petroleum products that are covered. 

Furthermore, Show Cause Orders (SCOs) were served, directing the ROs to explain in writing and under oath, their early implementation of the second tranche and to submit all the supporting documents that would substantiate the validity of the imposition.

The DOE is set to conduct a second round of validation activities in the coming days and a full report will be released once all the data has been consolidated. 

As of 17 January 2019, 1,639 ROs or 19% of the 8,630 ROs nationwide are already implementing the second tranche of fuel excise tax.  

“We are vigilantly monitoring the  implementation of the TRAIN Law so that our consumers will be amply protected,” Sec. Cusi assured.