Mar Roxas' tax figures on petroleum products need clarification

Written by
ABS-CBN Investigative and Research Group
Last modified
Saturday, March 16, 2019 - 01:27
Mar Roxas

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:

  1. 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.
  1. 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.
  1. 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.
  1. 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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