Bam pushes VAT cut on fuel amid price surge

Senator Bam Aquino is pushing to suspend or reduce VAT on fuel products to give Filipinos immediate relief from soaring pump prices triggered by the Middle East crisis.

At a Senate hearing, Aquino said lawmakers are eyeing a measure that would grant the President power to cut or suspend VAT on petroleum, noting it could bring bigger savings than excise tax reductions.

“We are looking at a follow-up measure… powers for the president to suspend or lower VAT for petroleum products… mas malaki ang pwedeng maging bawas nito kaysa sa excise tax,” he said.

Oil industry representatives backed the proposal, saying removing the 12% VAT would allow faster price cuts.

Aquino also urged the Department of Finance to compute potential consumer savings, adding the Senate is ready to fast-track the measure if backed by economic managers.

He noted a similar law already allows the President to reduce excise taxes, which could cut fuel prices by up to P10 per liter for gasoline and P6 for diesel.IMT