The economic managers didn’t want to forgo a big sum of money.
Economic managers of President Rodrigo Duterte definitely know better about keeping fiscal health in check rather than be populist.
Finance Secretary Carlos Dominguez III and Budget Chief Benjamin Diokno announced on Thursday, Nov. 29 that they are recommending to bring back the P2 per liter increase in fuel excise taxes for 2019, given that world crude prices are now dropping to the $50-60 per barrel level.
“The DBCC also took into consideration the adverse impact on revenues and expenditures for fiscal year 2019 should the government proceed with the suspension of the scheduled increase of excise taxes on petroleum,” the Cabinet officials said.
What’s at stake here is P43.4 billion in net revenues, which will be foregone if the oil tax is postponed for the entire year.
This is still due for Duterte’s consideration by Tuesday, Dec. 4.
