enait Difier of the & enrarp NOV 12 P5:48 TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: SENATE S. No. 1522 Introduced by Senator Manuel "Lito" M. Lapid AN ACT AMENDING SECTION 148 OF THE NATIONAL INTERNAL REVENUE CODE TO ALLOW FOR THE AUTOMATIC SUSPENSION OF EXCISE TAXES ON REGULAR GASOLINE, UNLEADED PREMIUM GASOLINE, AND DIESEL EXPLANATORY NOTE This bill seeks to amend existing tax laws to establish a mechanism for the automatic suspension of excise taxes on key petroleum products. Under the National Internal Revenue Code, as amended by Republic Act No. 10963 or the TRAIN Law, excise taxes were imposed and adjusted to generate revenue and promote energy efficiency. These taxes cover petroleum products, automobiles, and sugar-sweetened beverages, among others. Since 2020, excise tax rates have been P10.00 per liter for unleaded premium gasoline, P6.00 per liter for diesel, P5.00 per liter for kerosene, P3.00 per kilogram for liquefied petroleum gas, and P6.00 per metric ton for petroleum coke. While the TRAIN Law has increased government revenue, studies show that higher excise taxes on fuel have negatively affected energy-intensive industries, manufacturing, and agriculture, leading to reduced output, higher prices, and employment losses. The transport and storage sectors alone lost over 50,000 jobs, and poverty incidence slightly rose as fuel price hikes eroded household income. Environmental benefits were minimal, with only a 0.8% reduction in COz emissions.
The volatility of global oil markets has also exposed the rigidity of the current tax system. In 2023, excise tax collections from petroleum products fell by 62.6%, underscoring the need for a more responsive approach that balances fiscal stability with economic and social welfare. This measure therefore seeks to authorize the automatic suspension of excise taxes on regular gasoline, unleaded premium gasoline, and diesel during periods of sharp price increases or supply disruptions. Its aims are to: • Cushion consumers and industries from sudden fuel price shocks; • Reduce inflationary pressures and protect vulnerable households; • Support economic stability and social welfare; and • Enable government policy to adjust dynamically to changing market conditions. By creating a flexible mechanism for tax suspension, this bill strives to balance the government's revenue objectives with the urgent need to safeguard citizens' welfare and maintain economic stability amid fluctuating global energy prices. In view of the foregoing, the immediate passage of this bill is earnestly sought. Senator
Senan Office of the & cretary TWENTIETH CONGRESS OF THE ) 25 NOV 12 P5:48 REPUBLIC OF THE PHILIPPINES First Regular Session RECEIVED BY: SENATE S. No. 1522 Introduced by Senator Manuel "Lito" M. Lapid AN ACT AMENDING SECTION 148 OF THE NATIONAL INTERNAL REVENUE CODE TO ALLOW FOR THE AUTOMATIC SUSPENSION OF EXCISE TAXES ON REGULAR GASOLINE, UNLEADED PREMIUM GASOLINE, AND DIESEL Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Insert a new Section 148-B after Section 148-A of the National
Internal Revenue Code (NIRC), as amended, to read as follows: "SEC. 148. Manufactured Oils and Other Fuels. - There shall be collected on refined and manufactured mineral oils and motor fuels, the following excise taxes which shall attach to the goods hereunder enumerated as soon as they are in existence as such: XXXXXX "SECTION 148-B. FUEL EXCISE TAX SUSPENSION AND RESUMPTION. (A) UPON THE RECOMMENDATION OF AND DUE DETERMINATION BY THE DEPARTMENT OF ENERGY (DOE), THE PRESIDENT MAY SUSPEND OR REDUCE THE EXCISE TAX LEVIED UNDER THIS SECTION ON REGULAR GASOLINE, UNLEADED
PREMIUM GASOLINE, AND DIESEL FUEL OIL, WHEN THE MEAN OF PLATTS SINGAPORE (MOPS) CRUDE OIL PRICE HAS REACHED OR EXCEEDED A PRE-DETERMINED SUSPENSION THRESHOLD. (B) THE SUSPENSION OR REDUCTION OF THE EXCISE TAX SHALL BE AUTOMATICALLY LIFTED WHEN THE DOE DETERMINES THAT THE MOPS CRUDE OIL PRICE HAS FALLEN BELOW A PRE-DETERMINED RESUMPTION THRESHOLD. (C) THE DOE SHALL ISSUE AN IMMEDIATE PUBLIC ANNOUNCEMENT UPON THE DETERMINATION AND IMPLEMENTATION OF ANY SUSPENSION OR LIFTING OF THE EXCISE TAX AS PROVIDED HEREIN."
Section 2. Implementing Rules and Regulations. - Within sixty (60) days from
the effectivity of this Act, the DOF, in coordination with other relevant government agencies, shall issue the necessary rules and regulations to implement the provisions of this Act.
Section 3. Repealing Clause. - All laws, presidential decrees, executive orders,
proclamations, rules and regulations, or any part thereof, which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
Section 4. Separability Clause. - If any provision or part of this Act, or the
application thereof to any person or circumstance, is held unconstitutional or invalid, the remainder of this Act shall not be affected thereby.
Section 5. Effectivity Clause. — This Act shall take effect fifteen (15) days from
its publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,