MANILA — An increase in the excise tax on petroleum products is seen to address the slower growth in the collections of the Bureau of Customs.
Custom Commissioner Alberto D. Lina said the drop in global oil prices affects revenue collection even as the commission had been “doing alright” in the collection of import duties and taxes.
“We have to collect P1.5-2 billion a day. It would be challenging if collections from oil products decrease drastically,” Lina said.
BOC has also earlier reported a slower growth rate in the collections this year which as compared to the double-digit rise recorded last year.
Global oil prices dropped by about 53 percent during the first quarter causing revenues from oil imports to decrease by 38.1 percent to P14.9 billion.
The figure is despite the raise on the import volumes of the said commodity to almost a fifth.
Thus, increasing excise taxes on petroleum products might “intervene” in the slower growth of the BOC’s collections.
Lina also said that though the increase is a power exercised by the legislative body, the President may also increase it minimally.
“The power to tax is in Congress, but the President can also raise some tariff rates minimally, by 5-10 percent,” he said.