Julia Christine Botin

Article (news)

David Dizon

ABS-CBN News

Marikina 2nd District Rep. Miro Quimbo, chairperson of the committee on ways and means, explained Friday the difference between the excise tax on fuel products and the value added tax - and why the public pays for both.Speaking to DZMM, Quimbo said VAT is similar to a sales tax while the excise tax is “like a punishment for using cars that pollute the air.”“Para siyang mala-parusa. You are performing an act, something that the state wants to discourage… people from bringing cars,” he said.He cited as an example why the government does not impose an excise tax on watching movies, “but there is an excise tax on smoking cigarettes.”Under the Tax Reform for Acceleration and Inclusion Law the following excise tax rates are imposed on different fuel products:Gasoline: P10.00 per liter.Diesel: P6.00 per liter.Kerosene: P5.00 per liter.LPG: P3.00 per kilogram.After this, a 12 percent VATis also slapped on fuel prices.President Ferdinand Marcos Jr has said he would like to ask Congress for emergency powers to suspend the excise tax on fuel amid rising oil prices. The proposal is one of several measures eyed on mitigating the effects of oil price hikes including staggered price increases, moves to a 4-day workweek, and even carpooling.<div><a href="https://www.abs-cbn.com/news/business/2026/3/5/oil-crisis-plan-staggered-price-increases-excise-tax-cuts-4-day-work-week-1009">Oil crisis plan: Staggered price increases, excise tax cuts, 4-day work week</a></div>The Philippines consumes almost 500,000 barrels of oil daily and is ranked 32nd in the world for the highest consumption of oil. “Magising na tayo sa katotohanan: The Philippines is practically 100 percent import-dependent pagdating sa langis,” Quimbo said.“We are extremely affected every time the Middle East sneezes and catches a cold because we don’t have our own indigenous source of petroleum,” he added in Filipino.In the interview, Quimbo said soaring oil prices could have a domino effect on everything including transportation fare, electricity and basic goods.He urged the Department of Energy to strictly monitor oil companies, noting that local players increase prices just a few days after Dubai crude goes up.“Pero pag bumaba ng $2, $25 or $30, hindi naman natin maramdaman. Kailangang imbestigahan yan kung may pandaraya dahil it doesn’t make sense,” he said.Quimbo said granting the President emergency powers to cut fuel excise taxes is possible if oil prices exceed $80 a barrel for 3 months or if he declares a state of calamity as a result of spiraling oil prices.He noted the emergency powers cannot exceed 6 months, adding that the President must explain to Congress the possible effects of the cut in excise taxes.

Marikina 2nd District Rep. Miro Quimbo, chairperson of the committee on ways and means, explained Friday the difference between the excise tax on fuel products and the value added tax - and why the public pays for both.

Marikina 2nd District Rep. Miro Quimbo, chairperson of the committee on ways and means, explained Friday the difference between the excise tax on fuel products and the value added tax - and why the public pays for both.

What's the difference between excise tax and VAT - and why we pay both

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What's the difference between excise tax and VAT - and why we pay both

David Dizon,

ABS-CBN News

Published March 06, 2026 01:09 PM PHT

Read More:

excise tax

vat

miro quimbo

oil prices

carpooling

fuel prices

TRAIN law

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