Cheyenne Suarez

Econ think tank says suspending fuel excise taxes to benefit mainly the wealthy

Motorists gas up at a Petro Gazz station in Cainta, Rizal on March 10, 2022, as the firm rolled back their fuel prices amid rising fuel costs due to the Ukraine-Russia conflict. Fuel prices are expected to further increase the following week. Mark Demayo, ABS-CBN News

Article (news)

Arthur Fuentes

ABS-CBN News

MANILA (UPDATE) – A former head of the National Economic and Development Authority, and an economic think tank, rejected calls to suspend fuel taxes despite soaring global oil prices, arguing that such a move would primarily benefit the wealthy while weighing down government revenues.Former NEDA Director General Solita Monsod said suspending excise taxes “will affect not just the people who are targeted to be helped, but everybody including the rich.” “The suspension will use the amount of revenues that the government needs to finance its budget. It hits both sides, so it is not a good idea. It was proved to be not a good idea in 2022,” Monsod said in an interview on ANC. Action for Economic Reforms (AER) stated that it &quot;fully supports&quot; the government’s existing fuel subsidy program for public utility vehicle (PUV) drivers but warned that a broad tax suspension carries &quot;serious fiscal risks.&quot;According to Department of Finance (DOF) estimates cited by the group, suspending fuel excise taxes could result in a revenue loss of approximately P136 billion between May and December 2026. AER argued this would significantly weaken the country’s fiscal space at a time of mounting budget pressures.&quot;Suspending the fuel tax is fundamentally regressive,&quot; the group said. It said that the top 10 percent of Filipino households account for nearly 49 percent of total fuel consumption. In contrast, the bottom 50 percent of the population consumes only 13.9 percent.With only about six percent of Filipino households owning a car, AER contended that a tax holiday would effectively see the government sacrificing public funds to subsidize the consumption of the rich.&quot;The more sensible approach is targeted and temporary support for essential sectors that directly affect lower-income groups, particularly public transportation,&quot; the think tank added.<div><iframe width="640" height="360" src="https://www.youtube.com/embed/wXaOhhsynl8?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe> </div><div>WEALTH TAX, HEALTH TAX</div>Instead of suspending fuel excise taxes, Monsod proposed a tax on billionaires. “Ang suggestion ko for the crisis and any crisis, we should prepare... a wealth tax--a tax on what you own, not a tax on what you earn. This wealth tax is going to be targeted for the 50 wealthiest billionaires. Kung over P3 billion, ita-tax natin nang 3 percent the amount above that P3 billion,” Monsod said“Let them pay back a little bit to the Filipino people,” she added.AER meanwhile suggested that instead of cutting taxes, the government should consider strengthening &quot;health taxes&quot; on harmful products to generate revenue. It also advocated for demand-reduction measures, such as hybrid work and school setups, to moderate consumption while global supply remains tight.In the long term, AER urged the Philippines to transition away from volatile fossil fuel markets. &quot;The response to rising oil prices should focus on targeted assistance and fiscally responsible revenue measures, not broad tax suspensions,&quot; the group said.In the long term, AER urged the Philippines to transition away from volatile fossil fuel markets. Fuel prices have skyrocketed in recent weeks amid supply concerns following the outbreak of hostilities in the Middle East. President Ferdinand Marcos Jr has certified as urgent a bill seeking to give him powers to suspend or reduce fuel excise taxes during emergencies.

With just 6 percent of households owning a car, the group said a tax holiday would see the government sacrificing public funds to subsidize the consumption of the rich.

With just 6 percent of households owning a car, the group said a tax holiday would see the government sacrificing public funds to subsidize the consumption of the rich.

Former NEDA chief, econ think tank say suspending fuel excise taxes a bad idea

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Traffic

Manila

Horoscope

Business

Former NEDA chief, econ think tank say suspending fuel excise taxes a bad idea

Arthur Fuentes,

ABS-CBN News

Published Mar 17, 2026 12:45 PM PHT

|

Updated Mar 17, 2026 03:15 PM PHT

Read More:

AER

fuel excise tax

fuel prices

tax holiday

Solita Monsod

NEDA

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2026 ABS-CBN Corporation. All Rights Reserved.