TAGUIG CITY – The Department of Energy (DOE), through its Oil Industry Management Bureau (OIMB), is keeping a close eye on the implementation of the third and final tranche of excise taxes on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which took effect on 1 January 2020.
Under this tranche, additional excise taxes of PhP1.00 per liter for gasoline, PhP1.50 per liter for diesel, and PhP1.00 per kilogram (kg) for household liquefied petroleum gas (LPG) will be imposed. There will also be an additional 12 percent Value Added Tax, bringing the total to PhP1.12 per liter for gasoline and per kg of LPG, and PhP1.68 per liter for diesel.
“The DOE has been undertaking all necessary measures to ensure that all tranches of excise taxes on petroleum products are properly implemented. On top of our regular monitoring of companies’ compliance to national quantity and quality standards, the DOE-OIMB has been conducting verification inspections to make sure that that depots and terminals are complying with the provisions of the TRAIN Law. In particular, stocks that are part of their 31 December 2019 inventories are not to be subjected to additional excise taxes. Liquid fuel retail outlets, or what we commonly call as gasoline stations, are also expected to follow the same, and are required to display a tarpaulin indicating which of their products have been additionally taxed, and the date of implementation,” Secretary Alfonso G. Cusi said.
As of 24 January 2020, 48 of 67 LPG depots and 40 of 116 liquid fuel depots have already imposed additional excise taxes, indicated that their 31 December 2019 inventories have already been depleted.
Meanwhile, for LPG refilling plants, 4 of 297 have already implemented additional excise taxes starting 10 January 2020.
To date, Shell, PTT, Chevron, Petrogazz, Seaoil, and Total, with over 900 liquid fuels retail outlets, have already informed the DOE of their implementation of additional excise taxes. This accounts to over ten percent of the 9,003 retail outlets nationwide.
The DOE assures the public that it will continue monitoring retail outlets and their implementation of the taxation scheme to uphold the best interests of all consumers.
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