Home Investing News Revenue from marked fuel hits P324 billion

Revenue from marked fuel hits P324 billion

by
JCOMP-FREEPIK

DUTIES AND TAXES collected from marked fuel products had reached P324.46 billion as of Nov. 25, counting back to 2019 when the program started, according to the Department of Finance (DoF).

The volume of levied fuel had hit 32.88 billion liters since Sept. 4, 2019, based on data sent by Finance Secretary Carlos G. Dominguez III to reporters via Viber on Monday.

Revenue included P294.64 billion in Customs duties and P29.81 billion in excise tax.

Almost three-quarters of the marked fuel came from Luzon, a fifth from Mindanao and 5.47% from the Visayas.

Diesel accounted for 60.98% and gasoline had a 38.49% share, with kerosene taking the rest.

The program seeks to deter fuel smuggling by injecting a special dye into the products to signify tax compliance. The absence of the dye means the fuel was probably smuggled.

The government in September last year started collecting a fuel marking fee of P0.06884 a liter, inclusive of value-added tax on manufactured, refined and imported petroleum products.

The government has lost as much as P40 billion from fuel smuggling, the DoF has said.

The House Committee on Ways and Means approved a bill on Nov. 11 that seeks to suspend or lower the excise tax on some fuel products for six months amid rising global oil prices.

Albay Rep. Jose Ma. Clemente S. Salceda, who heads the House body, said the House of Representatives was likely to approve the measure.

But the DoF has said suspending the excise tax on fuel would likely improve the disposable income of wealthier households faster than others, making the tax relief inequitable. — Jenina P. Ibanez

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