Suspending the value-added tax amid rising fuel prices carries risks far beyond immediate relief, Senate Pro Tempore Panfilo Lacson cautioned Sunday, warning that the economic damage could outweigh any short-term benefit to consumers.
“Hindi ganoong kasimple kasi tinitingnan lang natin suspend, suspend (VAT) para masiyahan ‘yung mga kababayan natin pero ‘yung impact niya sa gross domestic product natin, sa GDP matindi. In the long term or in the medium term, tayo rin ang tatamaan,” Lacson said.
The senator placed the combined revenue loss at more than P320 billion if both the excise tax on petroleum and the VAT are suspended. Excise tax foregone revenues alone, he said, could reach P200 billion by 2027.
“Sa excise tax lang, assuming na aabot tayo sa 2027, nasa mga P200 billion yung impact sa foregone revenues,” he told Super Radyo dzBB. “May suggestion pa na i-suspend pa ang VAT. Magdodoble iyan, papalo tayo ng P320 plus billion kung pati ang VAT i-suspend dahil sa krisis.”
Lacson said suspending excise taxes on petroleum products should be sufficient for now, and that any move to extend the suspension to VAT would require deeper study given its broader macroeconomic implications.
The warning comes as diesel prices are projected to climb by P17 to P19 per liter next week, with regular diesel potentially hitting P165 per liter and premium diesel surpassing P170 per liter, as fuel hikes tied to the Middle East conflict are expected to persist.
President Ferdinand Marcos Jr. has already signed legislation granting him emergency powers to suspend or reduce excise taxes on fuel. The law limits any such suspension or reduction to a maximum of three months and allows targeted application to specific petroleum products, either as a full suspension or partial reduction. Marcos has said the Development Budget Coordination Committee will convene to discuss how those powers will be exercised.
A separate legislative push is also underway. Senator Imee Marcos has urged passage of Senate Bill No. 2005, which would double the income tax exemption threshold to P500,000 in annual income from the current P250,000, and raise the tax-exempt ceiling on bonuses — including 13th-month pay — to P200,000 from P90,000.
On fuel price enforcement, Lacson pressed authorities for clearer public accounting of penalties handed down to gas stations caught overpricing. “Kailangan makakuha tayo ng feedback, ano nang nangyari sa sinasabi nilang nahuli nila. Kasi in flagrante yan, plain sight yan. Nakapaskil sa kanilang presyo na tinaas nila agad-agad di pa authorized ng DOE or ng ERC,” he said.
The Philippine National Police reported that nine cases have been filed so far, with additional complaints under case build-up across several regions. Two stations in Nueva Vizcaya and Eastern Samar were charged in early March following joint monitoring operations with the Department of Energy. As of April 2, 375 of the country’s 14,519 gas stations remain temporarily closed due to petroleum supply disruptions.
