VOTING 247 in favor, three against, and no abstentions, the House of Representatives on Monday approved, on the third and final reading, a measure that 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.
Marcos also cited the chamber’s push to keep priority measures moving under the leadership of Speaker Dy, as committees and the plenary work within a tightening session calendar.
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.
HB 8418 changes Section 148 of the National Internal Revenue Code to allow the President, based on advice from the Development Budget Coordination Committee and working with the Secretary of Energy, to pause or lower the excise tax on fuel under certain conditions designed to ensure quick action while keeping protections in place.
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 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, which leads to unusually high prices for fuel, as confirmed by the Secretary of Energy, so the government can step in when local prices become very high.
The bill states that the suspension can apply to certain petroleum products and can be either a complete stop or a partial cut of the excise tax rates, based on current situations 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.
The measure also sets a maximum limit, stating that the total time for the suspension or reduction cannot be more than one year, and it requires that any suspension or reduction must end when the reasons for the relief are no longer present, with excise tax rates automatically going back to normal after that without needing more government action.
To keep the grant of authority time-bound, the bill states that the President’s power to temporarily suspend or reduce the excise tax on fuel products may be exercised only until December 31, 2028.
The bill adds reporting requirements, directing the President, through the Secretary of Finance, to submit to the House and Senate a report within 15 days from issuance and every month thereafter detailing the factual basis for the action, estimated foregone revenues and expected impact on inflation, fuel prices and other economic activity.
The Department of Finance, Department of Budget and Management, Department of Economy, Planning and Development, Department of Energy and Bangko Sentral ng Pilipinas, in coordination with the Bureau of Internal Revenue and Bureau of Customs, are directed to jointly issue the implementing rules and regulations within 15 days from the law’s effectivity.
The measure was defended on the floor by House Committee on Ways and Means Chair Rep. Miro Quimbo, as lawmakers emphasized the intent to give the Executive branch a calibrated tool to respond to sudden global shocks while keeping congressional oversight and clear limits in place as the bill moves to the next stage of plenary action.
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.
