Fuel products are about to get more expensive as the Philippine government is planning to impose additional taxes on top of the 12% value-added tax (VAT).
According to PhilStar's report, the additional taxes amounting to Php6 per liter will cover diesel products used by passenger buses and jeepneys, as well as oil products used for cooking, electricity, kerosene and aviation gas. The tax on gasoline will also be raised from Php4.35 to Php10 per liter.
Menteri Keuangan Benjamin Diokno mengatakan kepada ABS-CBN News bahwa pajak tambahan akan memberikan pemerintah pendapatan tambahan, yang diperkirakan sebesar Php200 miliar, untuk membiayai proyek infrastruktur. "Tidak ada pajak cukai pada diesel, meskipun dikenakan PPN 12 persen seperti produk minyak lainnya. Saya rasa hal ini harus diperbaiki," kata Diokno.
The Department of Finance (DOF) has already submitted the said tax proposals to the House of Representatives.
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source: PhilStar
That Php6 on diesel translates to at least additional 18% increase in the price of diesel. Everything else will correspondingly increase in prices, thus taxes collected too. This ranges from electricity, water, food, commodities, products, services, transportation costs, construction costs, operating costs of companies/manufacturers, etc. Those who doesn’t understand economics thinks otherwise (that these will not be affected). Once it’s implemented, will start the ball rolling, and can never be turned back. The Philippines will become less competitive as compared to its neighbors.