Philippines: Over 300 sites start collecting new fuel taxes

The new taxes are to be implemented under the Tax Reform for Acceleration and Inclusion (TRAIN) as of 1 January 2019.

The Department of Energy (DoE) recently announced that a total of 268 gas stations Petron Corp. - out of 8,630 sites - already imposed the excise and value-added taxes (VAT) under the second tranche of the tax reform law. 32 Flying V stations also implemented the higher tax, informed BusinessWorld.

DoE Undersecretary, William Felix B. Fuentebella, said in a press conference that the DOE will check the stations to verify that these complied with the required notification detailing the implementation of the second round of fuel excise tax increase. Any fuel retailer that imposed the taxes without the proper notification should be reported by the consumers to the DOE.

Supply from 2018 is expected to last for at least two weeks for importers and at least 30 days for refiners. “We will ensure the fuel stocks for 2018 will be utilized first and sold at the pre-implementation prices,” said DoE Secretary Alfonso G. Cusi.

Taxes implemented under the second tranche of TRAIN

Under the second tranche of the TRAIN scheme, an additional excise tax of P2 ($0.03812) will be imposed per liter of diesel and gasoline, and P1 ($0.01906) per kilogram on household (LPG). An additional 12% VAT will also be impletemented, which amounts to P2.24 ($0.04269) for both diesel and gasoline, and P1.12 ($0.02135) for LPG.