PBBM: Fuel excise tax suspension bill now urgent

President Ferdinand Marcos, Jr. (Courtesy: Presidential Communications Office)

President Ferdinand “Bongbong” Marcos Jr. on Thursday certified as urgent a House bill that would allow the chief executive to suspend or reduce excise taxes on petroleum products during national or global economic emergencies.

In a letter dated March 12, Acting Executive Secretary Ralph Recto said the President was certifying the immediate enactment of House Bill 8418, or the proposed “Act Authorizing the President of the Philippines to Suspend or Reduce the Excise Taxes on Petroleum Products During National or Global Economic Emergencies.”

Recto said the certification was made pursuant to Article VI, Section 26(2) of the 1987 Constitution, which allows the President to certify a bill as urgent to enable Congress to pass it on second and third reading on the same day.

Under the bill, the President may suspend or reduce excise taxes on petroleum products for a limited period when global oil prices surge or when an economic emergency is declared.

The authority could be exercised, for example, if the average price of Dubai crude oil exceeds $80 per barrel for a sustained period.

The proposal comes as the Philippines braces for potential economic fallout from the ongoing conflict in the Middle East, which has rattled global energy markets and raised concerns about higher fuel costs.

Lawmakers in the House of Representatives of the Philippines earlier approved the measure on second reading amid worries that prolonged instability in the region could drive oil prices higher. — Charles Dantes