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DoF cites higher Customs collections

July 11, 2019

Higher collections were observed from ports amid businessman Ramon Ang’s claim of petroleum smuggling, the Department of Finance (DoF) said on Wednesday.

“In fact, after the previous announcement that implementation of the fuel marking program would start this quarter, we noted a steady increase in collections among the ports where petroleum products are regularly imported. This is a strong indicator of increased compliance,” Finance Secretary Carlos Dominguez 3rd said in a message to reporters.

Finance Secretary Carlos Dominguez 3rd

“Those who skirted required declarations and payment of taxes in the past are now following the law,” he added.

Dominguez said the collection of Port of Limay has exceeded its target by P3.6 billion in June. This was also higher than the excess collection in May by P1.1 billion.

“The ports of Subic and Cagayan de Oro likewise exceeded their targets,” he added.

Earlier, Ang said petroleum smugglers were on the rise after the implementation of higher fuel excise taxes, as mandated by Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (Train) Law.

Ang, who is Petron Corp.’s president and chief executive officer, had told reporters that volatile global crude oil prices and stiff competition with small players prompted the listed firm to defer its $600-million expansion of its refinery in Limay, Bataan.

Signed by President Duterte in December 2017, the tax reform law levied an excise tax of P2.50 per liter for diesel and P7 per liter for gasoline. By January 2019, the excise tax on diesel and gasoline rose by P4.50 per liter and P9 per liter, respectively.

Dominguez said the DoF has anticipated the likely surge in smuggling, prompting the agency to implement the fuel marking program which was designed to help address the issue.

The program intends to check oil smuggling by marking imported and refined gasoline, diesel and kerosene to ensure taxes and duties are paid.

A fuel marking fee amounting to P0.06884 per liter of fuel shall be paid by the government to Société Industrielle et Commerciale de Produits Alimentaires and SGS Philippines for the first year of implementation.

For the second to fifth year, the fee will be borne by petroleum companies on top of duties and taxes to be collected by Bureau of Customs and the Bureau of Internal Revenue, respectively.

Credit belongs to : www.manilatimes.net

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