THE House of Representatives on Wednesday approved on second reading a measure that would authorize President Ferdinand “Bongbong” R. Marcos Jr. to temporarily suspend or reduce the excise tax on fuel when extraordinary conditions trigger sharp price shocks that hit transport, food and household expenses.
House Majority Leader and Ilocos Norte Rep. Ferdinand Alexander “Sandro” Marcos, one of the authors of the measure along with Speaker Faustino “Bojie” Dy III, said the bill is built for moments when global disruptions push fuel prices upward fast and Filipino families need the government to respond with speed and precision.
“This bill gives the President a measured tool to cushion that shock, with clear triggers, clear limits and clear reporting when the prices of fuel and basic commodities get too high. Proteksyon ito sa mga mamamayan sa biglaang pagsirit ng presyo ng mga pangunahing bilihin,” Marcos stressed.
The measure, approved under House Bill (HB) No. 8418 or the An Act authorizing the President to suspend or reduce excise taxes on petroleum products during national or global economic emergencies, amending for the purpose the National Internal Revenue Code of 1997, as amended under Committee Report No. 147, amends Section 148 of the National Internal Revenue Code to allow the President to suspend or reduce fuel excise taxes, subject to strict conditions and time limits, so relief can be activated without waiting months for a new law in the middle of a crisis.
Marcos and Dy pushed the measure as part of the House’s effort to keep the government prepared for price spikes tied to international events, including conflict-driven disruptions in global oil supply that can ripple into higher domestic pump prices and higher costs of basic commodities.
During plenary deliberations, Marikina Rep. Miro Quimbo, chair of the House Committee on Ways and Means, defended the measure on the floor, stressing that the authority is not open-ended and is surrounded by safeguards meant to protect both consumers and fiscal stability.
Under the bill, the President may exercise the authority only upon recommendation of the Development Budget Coordination Committee and in coordination with the Secretary of Energy, and only if one of two conditions is present.
The first trigger is when the Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately before the order to suspend or reduce is issued.
The second trigger is when there is a declared state of national emergency or calamity and it results in extraordinary increases in domestic pump prices, as certified by the Secretary of Energy, establishing a formal basis for action beyond ordinary market movements.
The President’s suspension or reduction may be applied to specific petroleum products and may be calibrated as a full suspension or partial reduction, depending on the conditions that caused the price surge and the scope of relief needed.
To prevent abuse and to protect government revenues, the measure sets a firm duration limit of up to six months per suspension or reduction, unless Congress extends or terminates it earlier through a joint resolution, and it caps the aggregate period at not more than one calendar year.
The bill also requires that the suspension or reduction be lifted once the extraordinary conditions no longer exist, and it provides for the automatic reinstatement of the excise tax rates after the period ends without need of further government action.
To ensure transparency, the bill requires the President, through the Secretary of Finance, to report to both chambers within 15 days from issuance of the order and every month thereafter, stating the factual basis for the action, the estimated foregone revenues and the expected effects on inflation, fuel prices and other economic activity.
The measure also mandates the issuance of implementing rules within 15 days from effectivity by the Department of Finance, the Department of Budget and Management, the Department of Economy, Planning, and Development, the Department of Energy and the Bangko Sentral ng Pilipinas, in coordination with the Bureau of Internal Revenue and the Bureau of Customs, to ensure consistent enforcement and clear administrative procedures.
Marcos said the House moved the bill with urgency as part of the chamber’s push under Dy’s leadership to keep policy tools ready for real-world shocks that families feel quickly at the pump, in the market and in their daily commute.
“Under Speaker Dy, we are moving with discipline and urgency because the costs that hit families do not wait for politics. Ang trabaho natin is to keep options ready, act when the triggers are met and make sure relief reaches people without delay,” Marcos said.
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.
