Philippines: DOF may put off suspension to oil tax hike

• THERE MAY BE less pressure for the government to press on with its stated commitment earlier this week to put off an oil excise tax hike set in Jan 19 amid signs that Dubai crude price could average less than USD80 per barrel in 4Q18, the trigger price under the law for automatic suspension, the Department of Finance (DoF) hinted in a bulletin on 17 Oct 18.
• At the same time, one DoF senior official said in an interview that the situation bears watching as oil prices remain “too volatile,” hence, pressure is still tilted to the upside.
• Malacañang Palace announced its commitment to suspend the scheduled oil tax hike on 15 Oct 18 in the wake of futures data showing above-USD80 per barrel levels in 4Q18, with prices falling below that trigger starting Jan 19.
• The DoF bulletin on noted that “[u]ncertainties in the global economy arising from the trade war, US President (Donald) Trump imposing sanctions on Iran, and declining Venezuela production scared financial and commodity markets, sending equities and commodity prices gyrating from day to day. This has resulted in volatile crude oil prices,” the department explained.
• However, Finance Assistant Secretary Antonio Lambino said the government would still push through with the suspension of the excise tax hike in Jan 19. But he said the DOF may need to review its implementation depending on the price of Dubai crude oil.

External Link: https://www.bworldonline.com/dof-less-pressure-to-put-off-oil-tax-hike/

External Link: https://www.philstar.com/business/2018/10/18/1860902/dept-finance-backpedals-fuel-tax-suspension