The reports will help the Development Budget Coordination Committee (DBCC) and the DOE determine whether to continue, modify, extend or terminate the tax suspension.
President Ferdinand Marcos Jr. signed Executive Order No. 125 on Sept. 25, suspending excise taxes on LPG and kerosene.
Relief rules
The suspension does not cover LPG used for petrochemical production or motive power, or kerosene used as aviation fuel.
A similar three-month suspension ordered in April ended in July after the oil price benchmark fell below the threshold for the tax relief.
The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 100-2026 on Sept. 28 to implement EO 125.
The order followed the DOE’s certification that the one-month average Dubai crude oil price reached $99.41 per barrel from Aug. 13 to Sept. 11. The average was above the $80-per-barrel threshold for possible excise tax relief under Republic Act No. 12316.
Under EO 125, the DBCC, in coordination with the DOE, will review the suspension monthly and may recommend to the President its continuation, modification, extension or termination.
Relief review
The DOE will also provide the DBCC and Congress with the information required under RA 12316.
The agency said the measure removes P3.36 per kilogram in excise tax on LPG, equivalent to P36.96 for a standard 11-kilogram cylinder, and P5.60 per liter on kerosene.
“Our priority is to ensure that the tax relief is reflected promptly in the market so that the savings reach Filipino households as quickly as possible,” Energy Secretary Sharon Garin said. —Ed: Corrie S. Narisma
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