Philippines Eyes Hike on Oil Tax
July 18, 2016 Taxation in Philippines
MANILLA – Excise taxes on oil products in the Philippines could be raised to account for 2 decades of stagnant rates.
Over the weekend the Finance Secretary of the Philippines Carlos Dominguez III announced that the government may soon increase the rate of excise tax on fuel products.
The rate of excise tax on fuel and fuel products in the Philippines is currently set at up to PHP 4.50 per litre, a rate which was set and left un-adjusted since 1997.
Carlos Dominguez III explained that now is a perfect time to raise the rate of the excise tax, as the prices of oil and oil products around the world are at record lows.
It has been proposed that the rate of the tax be raised to approximately PHP 10 per litre for oil, oil products, and gasoline, while the rate of diesel be raised to PHP 6 per litre.
The proposed rates are based on the rate of inflation seen since the tax was first set almost two decades ago.
Further, it was proposed that following the rate hike, the excise should be indexed to rise by approximately 4 percent per year.
Photo By: L.C. Nøttaasen