Signed Republic Act. No 12316 (Suspend/reduce excise tax on petroleum products)

President Ferdinand R. Marcos Jr. has signed into law a measure authorizing the suspension or reduction of excise taxes on petroleum products once global oil prices reach a set threshold, providing the government with a key tool to cushion the impact of rising fuel costs on the economy. Republic Act 12316 allows the President, upon recommendation of the Development Budget Coordination Committee (DBCC) and in coordination with the Energy Secretary, to suspend or reduce fuel excise taxes if Dubai crude oil price reaches or exceeds US$80 per barrel for one month. The law states that any suspension or reduction of fuel excise taxes can only last up to three months, but not more than one year in total, and taxes will automatically return to their original rates either one week after the one-month average Dubai crude oil price drops below US$80 per barrel, as certified by the Department of Energy, or after three months—whichever comes first. “The power of the President to temporarily suspend or reduce the excise tax on petroleum products granted under this Section shall be exercised only until December 31, 2028,” the law stated.

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