The Department of Energy (DOE) reminded oil industry players to empty their current oil inventories before applying the second tranche of excise taxes to petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law for 2019.
The DOE said that they have coordinated with the Department of Finance, the Bureau of Customs, and the Bureau of Internal Revenue to devise a mechanism to closely monitor existing oil inventories following the implementation of the additional fuel excise taxes on January 1, 2019.
“We are ready to implement the second tranche of TRAIN, which imposes additional excise taxes to various commodities like petroleum products by New Year,” DOE Sec. Alfonso Cusi said in a statement.
“We have to ensure the proper implementation of the second tranche of Train, because the new collection will be used to support our ‘Build Build Build’ programs, free tuition fee and medical assistance for our kababayans,” Cusi explained.
Cusi stressed that the DOE is stringently looking at the 2018 inventories of oil companies in order to protect consumers from unjust trading and profiteering once the second tranche is operationalized.
“The sale of old stocks, referring to the remaining balance of the inventory ending 31 December 2018, which was not covered by the second tranche of excise taxes should not be collected from the consumers,” the energy secretary added.
Cusi warned that they will impose administrative penalties, including closure, and file criminal charges for large scale estafa to violators.
The DOE chief also expressed confidence that all oil companies will cooperate for a prosperous new year for 2019.
Under TRAIN law, also known as Republic Act 10963, the excise taxes for diesel and gasoline will go up by Php 2 per liter starting January 1, 2019.