THE House of Representatives is scheduled to approve this week a measure, certified as urgent by President Ferdinand “Bongbong” R. Marcos Jr. has been granted the authority to temporarily cut or suspend excise taxes on petroleum products as lawmakers work to implement a faster response to rising oil prices driven by the conflict in the Middle East and the broader economic strain these shocks impose on Filipino households.
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.
House Majority Leader Ferdinand Alexander “Sandro” A. Marcos of Ilocos Norte said House Bill (HB) No. 8418 was crafted precisely for moments when an overseas crisis quickly turns into a local burden at the pump, in public transport, in the market, and on the dinner table.
“The House is moving to address an oil price crisis. This bill gives the president a lawful and time-bound way to cut or suspend fuel excise taxes so relief can reach the public before higher oil prices trigger a wider increase in fares, food and other basic expenses,” Marcos stressed.
Marcos also said the House continues to move priority measures with urgency under the leadership of Speaker Faustino “Bojie” G. Dy III, especially those tied to the daily cost of living and the financial pressure now felt by ordinary Filipinos.
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.
The House leader from Ilocos Norte added that the proposal is meant to ease a tax burden that has become heavier as global oil prices move upward.
“The proposal offers real relief, especially for workers, drivers, small businesses and families who feel the impact of every peso added to the cost of fuel,” Marcos added.
Under existing law, excise taxes form part of the retail price of petroleum products, which means that every increase in fuel cost spills into transportation, delivery, electricity generation, and the prices of goods sold in markets and stores, making the issue far bigger than what motorists pay at gasoline stations.
HB 8418 allows 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 that ensure quick action while keeping checks and balances in place.
One trigger under the bill is when the average Dubai crude oil price, based on the Mean of Platts Singapore, reaches or exceeds $80 per barrel for one month immediately before the issuance of the suspension or reduction order, a threshold meant to capture prolonged price pressure rather than short-lived market swings.
Another 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, allowing action to be taken when fuel prices rise too much.
The measure states that the suspension or reduction can apply to certain petroleum products only, and it can be either a complete suspension or a partial reduction of the excise tax, based on current conditions and the type of help needed.
To prevent abuse and to keep the authority narrowly tailored, the bill states that any suspension or reduction may be effective for not more than six months, unless extended or terminated earlier by Congress through a joint resolution.
It also provides that the total aggregate period of suspension or reduction may not exceed one calendar year.
The bill also says that any suspension or reduction must end when the reasons for it are no longer there, and the excise tax rates will automatically go back to normal without needing any more action from the government.
To keep the delegation time-bound, the President’s authority under the measure may be exercised only until Dec. 31, 2028.
As an added check, the bill directs the President, through the Secretary of Finance, to submit to the House and Senate a report within 15 days from issuance of the order and every month thereafter, detailing the factual basis for the action, the estimated foregone revenues, and the expected impact on inflation, fuel prices, and other economic activity.
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, are directed to jointly issue the implementing rules and regulations within 15 days of the law’s effectivity.
The measure was defended on the floor by House Committee on Ways and Means Chair Miro Quimbo of Marikina, as the House pressed ahead with a proposal designed to give the Executive branch a calibrated tool to confront sudden oil shocks while keeping clear limits and reporting requirements in place.
Other authors of the bill include Reps. Jay 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.
