Special Assistant to the President Christopher ‘Bong’ Go announced that the government will suspend the implementation of the second tranche of fuel excise taxes under Republic Act 10963, also known as the Tax Reform For Acceleration and Inclusion Law.
“To address the rising tide of oil and its effects on the inflation rate, we will defer implementing until the right time,” Go said during the opening of the TienDA Malasakit Store Farmers and Fishermen’s Outlet in Lower Bicutan, Taguig City on Sunday, October 14.
According to Go, President Rodrigo Duterte has signed a temporary suspension of the Php 2 additional excise taxes on gasoline and diesel that was supposed to be implemented on January 2019.
Go clarified that only the second tranche of the excise taxes will be suspended and that that the first tranche, which was implemented at the start of 2018, will continue to be enforced.
TRAIN law imposes a Php 7.00 excise tax on per liter of gasoline, and a Php 2.50 excise tax on per liter of diesel. Both taxes was supposed to increase annually until 2020.
Under RA 10963, the excise tax on per liter of gasoline will go up to Php 9.00 while the excise tax on per liter of diesel will go up to Php 4.50 for 2019.