Sendit TWENTIETH CONGRESS OF THE Offier of the Sutptory REPUBLIC OF THE PHILIPPINES First Regular Session ) 26 MAR -3 P2:43 SENATE 1923 RECEIVED BY: S. No.. Introduced by Senator Bam Aquino AN ACT GRANTING THE PRESIDENT OF THE PHILIPPINES POWER TO SUSPEND THE EXCISE TAX ON PETROLEUM PRODUCTS DURING NATIONAL OR GLOBAL ECONOMIC EMERGENCIES, AMENDING FOR THE PURPOSE
SECTION 148 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997,
AS AMENDED EXPLANATORY NOTE As a net importer of crude oil and petroleum products, the Philippines is highly vulnerable to fluctuations in international oil prices, which directly affect transportation costs, food prices, electricity generation, and overall inflation. Every spike in fuel prices immediately affects the daily lives of every Filipino. Jeepney and tricycle drivers struggle to make ends meet. Farmers and fisherfolk face higher production and transport costs. Small businesses see their operating expenses rise. Families already coping with rising food prices are forced to stretch limited household budgets even further. When fuel prices surge, it is the ordinary consumer who bears the heaviest burden. In times of national emergency or severe global economic disruption, the government must have the capacity to act swiftly to protect the purchasing power of Filipino households and prevent further inflationary pressure on essential goods and services. Delayed or rigid responses can deepen economic hardship, particularly for low-income families and workers who have little buffer against sudden price increases. This measure grants the President the authority to suspend the imposition of excise taxes on petroleum products when public interest so requires. It provides a targeted and time-bound mechanism that allows the government to deliver immediate relief during periods of extraordinary oil price volatility. It equips the State with a practical tool to shield consumers, support transport operators and small enterprises, and help stabilize local prices when global conditions threaten domestic economic stability. In view of the foregoing, the passage of this bill is earnestly sought. Bam Quin
TWENTIETH CONGRESS OF THE Difice of the Secretary REPUBLIC OF THE PHILIPPINES ) First Regular Session 26 MAR -3 P2:43 SENATE S. No. 1923 RECEIVED BY: Introduced by Senator Bam Aquino AN ACT GRANTING THE PRESIDENT OF THE PHILIPPINES POWER TO SUSPEND THE EXCISE TAX ON PETROLEUM PRODUCTS DURING NATIONAL OR GLOBAL ECONOMIC EMERGENCIES, AMENDING FOR THE PURPOSE
SECTION 148 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997,
AS AMENDED Be it enacted by the Senate and House of Representatives of the Philippines in 2 Congress assembled:
Section 1. Section 148 of the National Internal Revenue Code (NIRC) of 1997,
as amended, is hereby further amended by inserting a new paragraph to read as 5 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: XXX [For the period covering 2018 to 2020, the scheduled increase in the excise tax on fuel as imposed in this Section shall be suspended when the average Dubai crude oil price based on Mean of Platts Singapore (MOPS) for three (3) months prior to the scheduled increase of the month reaches or exceeds eighty dollars (USD 80) per barrel.] [Provided, That the Department of Finance shall perform an annual review of the implementation of the excise tax on fuel and, based on projections provided and recommendations of the development budget coordination committee, as reconciled from the conditions as provided above, recommend the implementation or suspension of the excise tax on fuel: Provided, further, That the recommendation shall be given on a yearly basis: Provided, finally, That any suspension of the increase in excise tax shall not result in any reduction of the excise tax being imposed at the time of the suspension.]
THE PRESIDENT OF THE PHILIPPINES MAY, UPON THE RECOMMENDATION OF THE SECRETARY OF FINANCE, SUSPEND THE IMPOSITION OF EXCISE TAX ON FUEL IN TIMES OF NATIONAL EMERGENCY OR WHEN PUBLIC INTEREST REQUIRES: PROVIDED, THAT SUCH SUSPENSION MAY BE LIFTED WHEN THE CONDITIONS THAT WARRANT THE SUSPENSION OF EXCISE TAX NO LONGER EXISTS.
Sec. 2. Implementing Rules and Regulations (IRR). - Within thirty (30) days
9 from the effectivity of this Act, the Secretary of Finance, upon the recommendation of 10 the Commissioner of Internal Revenue, shall promulgate the necessary rules and regulations for its effective implementation.
Sec. 3. Repealing Clause. - All laws, acts, decrees, executive orders, issuances,
and rules and regulations or parts thereof which are contrary to and inconsistent with this Act are hereby repealed, amended or modified accordingly.
Sec. 4. Effectivity. - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,