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.
Budget Secretary Benjamin Diokno told ABS-CBN News that the additional taxes would provide the government the additional revenue, which is expected at Php200 billion, to fund infrastructure projects. “There is no excise tax on diesel, though it is subject to the 12-percent VAT like other oil products. I think this should be corrected,” said Diokno.
The Department of Finance (DOF) has already submitted the said tax proposals to the House of Representatives.
Hit the source link below for the full report.
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.
Sana diesel lang kasi masnakakasira ng kalikasan ung diesel.
Tama lang ito haha.. saka bilisan na ang dagdag na sin tax (yosi, alak, sugal).
I agree. Mas okay nga tumaas presyo ng gas, pagkain, at ng mga commodities, para may additional pera ang gobyerno. Parang katulad siya ng EVAT na kinaiinisan nating lahat.
Miss Call, that’s sarcasm, right?