SSS–GSIS Pensyonado Party-list Rep. Rolando Macasaet on Monday called for urgent reforms in fuel taxation, proposing that Value-Added Tax (VAT) be applied only to pre-crisis base prices, with increases driven by global conflicts exempted.
“VAT should be capped. Removing excise tax alone is not sufficient. This is the most logical step to do,” Macasaet said in a news release.
He explained that under the current structure of fuel taxation, VAT is imposed on top of the total fuel price, which already includes excise taxes, effectively creating a “tax-on-tax” model.
“Under current practice, a 12 percent VAT is applied on the full price of fuel, including excise tax components, increasing the burden on consumers as prices rise,” he said, stressing that pensioners, minimum-wage workers, and low-income families are hit hardest by rising fuel costs.
“The current system allows revenues to rise automatically as fuel prices increase, but at the expense of ordinary Filipinos which is unreasonable and unjust,” Macasaet said. (PNA)