The House Committee on Ways and Means affirmed that safeguards will be put in place to ensure that ordinary citizens—not oil companies—benefit from the proposed suspension of fuel excise taxes, as reported by RH Milky Rigonan.

Committee chair Miro Quimbo made the assurance after the panel approved a measure granting emergency powers to President Ferdinand Marcos Jr., which includes the authority to temporarily suspend excise taxes on petroleum products amid rising global oil prices linked to tensions in the Middle East.

Quimbo said the committee would closely monitor the implementation of the tax suspension once it takes effect to make sure the relief is felt by consumers rather than absorbed by oil companies.

The lawmaker cited lessons from the implementation of the Rice Tariffication Law, where tariffs on imported rice were reduced but it took time before the public felt the impact through lower prices.

During the committee hearing, lawmakers estimated that the government could lose about P136 billion in revenue if the fuel excise tax is suspended. However, Quimbo said part of the potential revenue loss could be offset by increased collections from value-added tax (VAT) if global oil prices continue to rise.

Quimbo further explained that the committee aims to ensure that the government’s response to the oil price surge will be guided by solid economic data while protecting sectors that need assistance, including the country’s middle class.