TWO hundred pesos monthly allowance will be given to poor families for a year after President Rodrigo Duterte approved the ayuda to ease the impact of fuel price hikes, Malacañang said on Wednesday.
Acting presidential spokesperson Martin Andanar said Duterte approved the two recommendations of the Department of Finance (DOF) in light of the series of increases in fuel prices.
“Inaprubahan ng Pangulo ang dalawang rekomendasyon ng DOF kaugnay sa pagtaas ng fuel price (The President has approved the two recommendations of the DOF regarding the fuel price hikes),” he said.
“Una, ang pag-retain ng fuel excise taxes na ini-impose ng TRAIN [Tax Reform for Acceleration and Inclusion] Law dahil ang pagsuspende nito ay magre-reduce ng government revenue ng P105.9 billion na magpopondo sa mga programa ng pamahalaan. At pangalawa, ang pagbibigay ng targeted subsidies ng P200 bawat household to the bottom 50% of Filipino households,” Andanar said.
During Duterte’s Talk to the People taped on Tuesday and aired on Wednesday, Finance Secretary Carlos Dominguez III proposed providing a P200 montly subsidy for poor households for an entire year to ease the impact of fuel price hikes. He also recommended retaining the excise tax on fuel.
Dominguez admitted that the amount might not be enough but he pointed out that this is what the government can afford to provide as of this time.
The targeted subsidies will amount to P33.1 billion in budgetary requirements, according to Dominguez.
Dominguez said the funds for the subsidy would be sourced from the higher collection of value-added tax (VAT) due to the higher prices of fuel.
With the $110 per barrel Dubai crude oil price, Dominguez said VAT revenues will increase by P26 billion. At $125 per barrel Dubai crude oil price, VAT revenues will increase by P34.6 billion.
Some senators however on Wednesday said the cash aid is not enough and called for the temporary suspension of excise tax on fuel.
“Against P200 per month, napakaliit (that’s too small). ‘Di kakayanin ‘yun, ‘di makakasapat (That won’t suffice),” presidential candidate and incumbent Senator Panfilo Lacson said in a press conference in Madella, Quirino.
