THE House of Representatives on Wednesday adopted the Senate version of a proposed law to temporarily reduce or suspend the excise tax, following concurrence from its sponsor and authors.
During plenary deliberations presided by Deputy Speaker David “Jay-Jay” Suarez of Quezon, Deputy Majority Leader Luigi Villafuerte of Camarines Sur said the House Committee on Ways and Means, which sponsored House Bill (HB) No. 8418, agreed to align with Senate Bill (SB) No. 1982.
“We have been informed that the Committee on Ways and Means, sponsor of House Bill 8418 as well as the authors thereof, is in concurrence with the provisions of Senate Bill no. 1982. In accordance with our rules, I move to adopt Senate Bill no. 1982 as an amendment to House Bill No. 8418,” Villafuerte said.
The approved motion effectively allowed the House to adopt the Senate-approved version, streamlining the legislative process and bringing the measure closer to enactment.
The proposed law seeks to abolish the excise tax, a move lawmakers earlier said would provide relief to consumers and address rising costs tied to the levy.
With the adoption of the Senate version, the measure now moves a step closer to final approval, pending completion of the legislative process required for its enactment into law.
Last Monday, voting 248 in favor, three against, and no abstentions, the House of Representatives approved, on third and final reading, HB 8418, which would allow President Ferdinand “Bongbong” R. Marcos Jr. to temporarily reduce or suspend excise taxes on petroleum products during national or global economic emergencies, providing the government with a faster tool to cushion fuel price shocks that quickly drive up transport fares, food prices, and electricity costs.
House Majority Leader and Ilocos Norte Rep. Ferdinand Alexander “Sandro” A. Marcos said House Bill (HB) No. 8418, the proposed fuel excise tax suspension and reduction measure, was crafted as a safety valve for moments when global disruptions, including the Middle East conflict, threaten to push pump prices beyond what many families can absorb.
“This measure is in direct response to the ongoing crisis in the Middle East that has a direct effect on fuel prices and the cost of basic goods in the Philippines. Lalo na ngayon, lagpas P90 na ang diesel. Kailangan na nating isabatas ito para direcktang makaginhawa sa ating mga kababayan,” Marcos, one of the principal authors of the measure, along with Speaker Faustino “Bojie” G. Dy III, said.
“If the President can temporarily lift the excise tax, that is up to P10 per liter for gasoline and P6 per liter for diesel that can be taken off the price that people pay,” he added.
Under existing law, excise taxes are embedded in the retail price of fuel, which means every increase becomes part of the cost of commuting, delivering goods and running businesses, particularly for workers who spend daily just to get to work and parents who watch their market budget shrink with every spike.
The HB 8418 bill changes Section 148 of the National Internal Revenue Code to allow the President, with advice from the Development Budget Coordination Committee and the Secretary of Energy, to pause or lower the excise tax on fuel under certain conditions that aim to act quickly while also providing protections.
One trigger under the measure is when the average Dubai crude oil price, based on Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately preceding the issuance of the suspension or reduction order, allowing the government to act before the shock turns into a full-blown inflation surge.
A second trigger happens when the President declares a national emergency or disaster, and this leads to significant increases in local fuel prices, as confirmed by the Secretary of Energy, so the government can respond when fuel prices become unusually high.
The bill states that the government can pause or lower the excise tax rates on certain petroleum products, either completely or partially, based on current conditions and the relief needed.
Any suspension or reduction authorized under the measure will be effective for a period not exceeding six months, unless extended or terminated earlier by Congress through a joint resolution, placing a clear limit on how long the authority can be used per issuance.
Co-authors of the bill include Reps. Jefferson Khonghun, David “Jay-Jay” Suarez, Janette Garin, Kristine Singson-Meehan, Allan Ty, Claudine Diana Bautista-Lim, Salvador Pleyto, Jesus “Bong” Suntay, Ferdinand Martin G. Romualdez, Yedda Marie Romualdez, Andrew Julian Romualdez, Jude Acidre, Ryan Recto, Howard Guintu, Eduardo “Bro. Eddie” Villanueva, Lordan Suan, Adrian Salceda, Julienne “Jam” Baronda, Tobias “Toby” Tiangco, Eric Go Yap, Rufus Rodriguez, Stephen James Tan, Gerardo “Gerryboy” Espina Jr., Zaldy Villa, Ernesto Dionisio Jr., Rolando Valeriano, Joel Chua, Maria Cristina Angeles, Ramon Rodrigo Gutierrez, James “Jojo” Ang Jr. and Sergio Dagooc.
