Mar Roxas' tax figures on petroleum products need clarification
While he was introducing himself at the opening of ABS-CBN’s second Senatorial Town Hall Debate last February 24, Otso Diretso candidate Mar Roxas expressed disapproval of the taxes on petroleum products being imposed by the TRAIN Law.
Mar Roxas said:
Bakit ko gustong tanggalin ang buwis sa produktong petrolyo? Sampung piso bawat litro yan na ipinataw ng TRAIN 1 and TRAIN 2.
What the records say:
- TRAIN 2, also known as the TRABAHO Bill, has not yet been passed into law. The bill focuses on corporate income taxes. It has nothing to do with fuel.
- Roxas said the tax is P10/liter for “produktong petrolyo” or petroleum products, giving the impression that a uniform tax rate shall be applied to all petroleum products. This isn’t the case. By 2020, not this year, the tax for gasoline will be P10/liter and P6/liter for diesel.
- In referring to the P10/liter tax, Roxas used the word “ipinataw” which is in the past tense. While a tax of P10/liter will be imposed on gasoline beginning January 2020, the tax that has been collected from consumers beginning January 2019 is P9/liter, based on Section 43 of RA 10963. This amount does not reflect VAT.
- Sec. 43 of RA 10963 says that effective January 1, 2018 regular gasoline and unleaded premium gasoline would be taxed P7/liter. If you add 12% VAT the total would be P7.84/liter of gasoline.
However data shows that the amount P7.84 includes P4.87 (P4.35 excise tax +P 0 .52 VAT) which was imposed BEFORE the TRAIN law took effect.
Therefore, the correct amount that should have been attributed to the first tranche of TRAIN is P 2.97 (P2.65 excise tax + P0. 32 VAT) computed by deducting P4.87 from P7.84.
The second tranche of TRAIN in January 2019 imposed an additional P2.24 (P2.00 in excise tax + P0.24 VAT)
This means the total excise tax + VAT imposed on gasoline in the first and second tranche of TRAIN is P5.21 (P2.65 excise tax + P0.32 VAT +P2.00 excise tax + P0.24 VAT) and not P10 as Roxas said.
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