Rep. Quimbo doubts DOF will get P6 excise tax in diesel

Rep. Quimbo is uncertain if the Finance Department would get their proposed P6 excise tax on diesel which is part of the tax reform package that the agency submitted to Congress, an important part of the plan to fill the collections that would be lost due to the reduced income tax.

“The Finance Department is asking for the moon and stars, but they will eventually settle for Antartica, I have a feeling something like P3 indexed to inflation,” Quimbo said.

This means diesel prices would raise up to P34 or P35 per liter compared to the current price of P31 up to P32 per liter, but for the transportation group Pasang Masda it is still not acceptable.

“We would file for a P10 minimum fare, we would ask for a P10 minimum fare,” said Jojo Martin and vice president of Pasang Masda said in Filipino.

Jojo Martin explained that they (drivers and operators of jeepneys) are already facing difficulties with the ongoing price hike of petroleum products and now the new tax increase would be added on their problems.

“Our drivers are already too unfairly treated; they should just put the excise tax on other things like cigarettes, alcohol, beerhouses, clubs, motels, they should put it there (the excise tax) those are sins,” Martin added in Filipino.

But for Quimbo instead of creating and imposing a new tax, the ways of collecting the taxes should be improved as an alternative.

“Professionals, lawyers, accountants, Engineers, doctors, 60% of them don’t pay a single peso of tax, not even one peso of tax, they get away with it. Small entrepreneurship, businessmen 70% of them don’t pay a single peso of taxes,” Rep. Miro Quimbo said.

While it is good that some tax incentives are withdrawn on other industries, but just don’t touch the incentives from Business Process Outsourcing or BPO Industry.

And he also said that an incentives program should be enforced for tourism in the Philippines.