The government could lose up to ₱200 billion in revenue once President Ferdinand Marcos Jr. uses his emergency powers to suspend the oil excise tax, according to Atty. Dondanon Galera, BIR Head Revenue Executive Assistant of Excise Large Taxpayer Service

The revenue loss could potentially leave several government projects unfunded.

“So dahil mawawalan tayo ng ganong kalaking halaga, hindi rin mapopondohan yung ibang proyekto ng gobyerno,” Atty. Galera said

[“Because we could lose that large amount, other government projects would also go unfunded.”]

The possible revenue loss is based on the previous collection of the Bureau of Customs (BOC) because this agency is responsible for the collection of the oil excise tax, since a large portion of the oil stock in the Philippines is imported.

The suspension of the oil excise tax is effective for six months, but it could be extended through a joint resolution issued by Congress.

According to Atty. Galera, once the suspension takes effect, it would only apply to the upcoming oil imports.

Products that are currently available in the market are not applicable under the effect of suspension.

The BIR assures to issue clear regulations on timing and inventory, particularly for oil stocks that have already been imported and paid to ensure organized records and avoid confusion.

With reports from Evan Alvarez

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