A proposal to suspend fuel excise taxes is drawing caution from the Senate as policymakers weigh immediate relief against the government’s need to protect revenue for public services.
Sen. Sherwin Gatchalian on Monday said the measure must be carefully assessed, warning that suspending excise taxes on petroleum products could result in significant revenue losses.
Gatchalian, who chairs the Senate Committee on Finance, said the potential loss could reach between P16 billion and P18 billion.
“Malaki ang mawawala, mga 16 to 18 billion mawawala. Naintindihan natin yan. At pag nawalan tayo ng koleksyon, wala rin tayong pagkukunan ng ibibigay (There will be a big loss, around P16 to P18 billion. We understand that. And if we lose collections, we will also have no source for the assistance we provide),” he said.
He described the suspension of fuel excise taxes as a “last resort,” even as discussions continue on easing the burden of high fuel prices, particularly for diesel-dependent sectors.
Gatchalian said there is merit in supporting consumers and transport operators affected by oil price fluctuations, but stressed the need to balance relief measures with fiscal sustainability.
He expressed preference for targeted fuel subsidies, saying assistance should be directed to those most affected such as public utility drivers, farmers, and other key sectors.
“Ako pabor ako sa targeted approach dahil ang targeted, una-una, diretso ‘yan sa mga nangangailangan talaga (I favor the targeted approach because it goes directly to those who truly need it),” he said.
The senator also noted that global oil prices have shown signs of easing, giving the government room to adopt a more measured approach while monitoring market movements.
Instead of an immediate broad tax suspension, Gatchalian said options such as fuel discount programs and service contracting could provide faster and more focused relief to transport groups.
Despite this, he said the suspension of excise taxes on diesel remains part of ongoing policy discussions, given its heavy use in public transport and logistics operations.
Image courtesy of PNA
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