Baguio City Congressman Mark Go filed Joint Resolution No. 31 for the immediate suspension of the increase of excise tax on fuel including its schedule of increases under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
“If we will not suspend this now, this increase in excise tax on fuel will further cause inflationary effect that will result to continuing increases in the prices of our basic commodities and services and will add burden to the consumers,” Go explained.Inflation rate for September this year was recorded at 6.7%, the highest in a span of nine years bringing the nine-month average to 5% for 2018 which is above the government’s target.
Due to recent developments, the government’s economic managers recently revised the medium-term macroeconomic assumptions for 2018 to 2022 to reflect developments at the national and global level taking into account the more expensive oil in the world market, tightening of monetary policies and higher domestic inflation.
“We should not delay this suspension. Actions must be taken to normalize and maintain inflation rate as planned and projected by our economic managers. Otherwise our people will suffer more,” Go said.
The joint resolution was filed on October 22, 2018 and is now pending for first reading in the Congress.
It was reported that a similar move of suspending the increase of excise tax on fuel is being considered by the government. ABN