THE ratification of the P5.024-trillion national budget for 2022 and deliberations of measures either suspending or cutting fuel excise taxes will be the top agenda of the House of Representatives as it resumes session this week, the speaker of the Lower Chamber said.
Speaker Lord Allan Jay Q. Velasco said last Sunday that the Lower House will tackle various proposals seeking to either suspend or cut the excise taxes on petroleum products amid rising cost in fuel prices.
“As we prepare for the wider reopening of businesses, we must ensure that our economic recovery will not be hampered by unwelcome disruptions, such as the unimpeded sharp rise in the cost of fuel,” Velasco said.
“Congress would like to be informed of how fuel prices have shot up so fast in a matter of weeks, so that we can possibly come up with measures that will help mitigate this emerging obstacle towards our recuperation,” he added. As a response to rising inflation, continued stagnation in income recovery, several lawmakers have filed bills and resolutions proposing the reduction or postponement of fuel excise taxes on diesel, kerosene, and gasoline.
Earlier, the Department of Finance already objected to the proposed suspension of excise tax, saying it would be detrimental to the country’s economic recovery and long-term growth. House Committee on Ways and Means Chairman Joey Sarte Salceda said the Mean of Platts Singapore (Mops) price, which is the basis for the suspension of excise taxes under the Tax Reform for Acceleration and Inclusion Law (TRAIN), has already breached the $84-per-barrel price for crude.
“The benchmark under TRAIN was $80 per barrel, such that when the price threshold is hit, we would have suspended 2020 fuel excise tax increases,” Salceda said. “The 80-USD mark was an ‘alert level.’ We are past that level. MOPS for crude is now over $84. We should really take up a reduction in the excise taxes,” the lawmaker added.
2022 budget
MEANWHILE, Velasco reiterated his commitment to ensure the timely enactment of the government’s spending plan even as he welcomed the assurance from the Senate leadership that it won’t allow a reenacted budget in 2022.
“Our commitment is to ensure that the budget bill, which is focused on getting the Philippines back on the road towards full recovery from the Covid-19 crisis, reaches President Duterte’s desk before the yearend,” the Speaker said.
The Senate leadership had earlier ruled out the possibility of a reenacted budget in 2022 even if almost half of its members are now preoccupied with pre-campaign activities for either reelection or election to higher office.
The House passed on third and final reading its version of the 2022 General Appropriations bill last September 30. The bill has been transmitted to the Senate on October 25; two days ahead of the October-27 deadline earlier set by the lower chamber.
“As soon as the Senate is done with its own version of the budget, the House will be selecting the contingent to the bicameral conference committee to help reconcile the two versions,” Velasco pointed out. “With such assurance from the Senate leadership, we do not see any major stumbling block in having a ratified and enacted 2022 national budget by December.”
Also, Majority Leader Martin G. Romualdez said last Sunday the ratification of the proposed P5.024-trillion national budget for 2022 is the top priority of the Congress when it resumes session following a one-month break.