excise tax ph

Earlier this year, automakers have been updating their car prices according to the new Tax Reform for Acceleration and Inclusion (TRAIN) excise tax here in the Philippines. An adage goes, "In this world nothing can be said to be certain, except death and taxes." For that matter, excise tax is a form of indirect tax, a kind of taxation that is more difficult to evade than direct taxes such as income tax or property tax. In principle, therefore, virtually everyone pays their share of taxes through the mix of direct and indirect taxes. One of the more relevant excise taxes in public consciousness today would be the fuel excise tax, which is imposed over different petroleum products, owing to rising oil prices in the Philippines and overseas. However, why would the Filipino government choose to ramp up subsidies instead of suspending fuel excise taxes altogether, despite a rising call for suspension even among national candidates for the 2022 election? Those in government, however, sees the potential effects of suspension from another perspective: the immediate relief expected from removing the fuel excise tax are likely to benefit the wealthier segments of society. Remember that the fuel excise tax is fixed after reaching its full implementation in 2020. Read more in our articles including "BMW Philippines Car Prices for 2018" and "Why fuel excise taxes remain in the Philippines: equity or equality?".