Julia Christine Botin

Article (news)

Arthur Fuentes

ABS-CBN News

MANILA – A major business group said it is backing a measure to suspend fuel excise taxes to cushion the impact of skyrocketing oil prices on the public.The Financial Executives Institute of the Philippines (FINEX) issued the statement Friday, citing &quot;severe economic pressures&quot; triggered by escalating conflict in the Middle East. FINEX warned that volatility in global oil markets is rapidly raising transport and logistics costs, threatening to pass through to consumers via higher prices for food and essential services.A bill seeking to give the President authority to suspend or reduce fuel excise taxes has been <a href="https://www.abs-cbn.com/news/business/2026/3/12/marcos-certifies-urgent-bill-allowing-fuel-tax-suspension-cuts-1708" rel="noopener noreferrer" target="_blank">certified as urgent </a>by President Ferdinand Marcos Jr. House lawmakers are aiming to <a href="https://www.abs-cbn.com/news/business/2026/3/12/house-seen-to-ok-emergency-powers-on-fuel-excise-tax-on-monday-1656" rel="noopener noreferrer" target="_blank">pass the bill </a>when session resumes on Monday.FINEX said it supports a temporary excise tax holiday, &quot;and other mitigating fiscal measures to soften the VAT impact if the global oil price escalation continues&quot;, saying that &quot;economic policy must focus on stability and controlling inflation&quot; during periods of heightened global instability.The group argued that while fuel excise taxes under the country’s TRAIN Law were designed to fund infrastructure, extraordinary global shocks justify a &quot;rules-based&quot; adjustment. Without intervention, they warned, the burden will fall heaviest on low-income households and rural communities where fuel accounts for a large share of daily expenses.&quot;Simply allowing inflationary pressures to cascade to food prices, logistics costs, and household expenses can ultimately cause much greater economic harm,&quot; the group stated. &quot;It reduces household well-being, suppresses consumption, dampens business confidence, and slows down economic growth.&quot;To ensure fiscal discipline, FINEX proposed a framework for the suspension, including &quot;clearly defined global triggers&quot; and &quot;strict time-bound parameters.&quot; The group also called for &quot;automatic sunset provisions&quot; to ensure normal taxation resumes once market conditions stabilize, providing predictability for businesses and investors.The association further endorsed the President’s certification of urgent legislative measures that would allow the executive branch to act swiftly during international disruptions. By institutionalizing this framework, FINEX believes the Philippines can better protect its &quot;productive sectors,&quot; including agriculture and small enterprises, from external supply chain shocks.World oil prices have risen to over $100 per barrel as Iran vowed to close the economically vital Strait of Hormuz to trade, in retaliation for the attacks on its leaders and territory by the US and Israel.

FINEX said that while fuel excise taxes were designed to fund infrastructure, extraordinary global shocks justify a "rules-based" adjustment.

FINEX said that while fuel excise taxes were designed to fund infrastructure, extraordinary global shocks justify a "rules-based" adjustment.

Financial executives back fuel excise tax holiday to blunt global oil price shock

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Financial executives back fuel excise tax holiday to blunt global oil price shock

Arthur Fuentes,

ABS-CBN News

Published Mar 13, 2026 03:34 PM PHT

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FINEX

Financial Executives

fuel excise tax

oil prices

fuel prices

VAT

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