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Congress questions PBBM's no tax break on diesel, gasoline— Is policy favoring the rich?

Margret Dianne FerminIpinost noong 2026-04-17 07:44:02 Congress questions PBBM's no tax break on diesel, gasoline— Is policy favoring the rich?

MANILA, Philippines — Heated debates erupted in Congress after President Ferdinand Marcos Jr. decided not to include diesel and gasoline in the suspension of fuel excise taxes, a move that economic managers argued would primarily benefit wealthier households.

Lawmakers expressed frustration, saying the decision unfairly excluded middle-class Filipinos who also bear the brunt of rising fuel costs. “Of course not! You don’t have to be an economist to be able to see, everybody’s affected,” one legislator said, stressing that the middle class contributes the majority of tax revenues yet often feels overlooked in government relief measures.

House Committee on Ways and Means Chair Miro Quimbo questioned the Department of Finance's (DOF) recommendation, noting that projected excise tax collections for 2025 amount to ₱173 billion, with gasoline contributing ₱83 billion and diesel ₱71 billion. 

“It was very clear upon the recommendation of the DOF that we could afford a suspension on both, on all the petroleum products,” Quimbo said.

DOF Undersecretary Carlo Adriano defended the exclusion, citing consumption data. He explained that a significant portion of diesel use comes from the wealthiest households, while kerosene and LPG are more widely used by vulnerable groups. 

“The recommendation of the DBCC to suspend the excise tax on LPG is because it’s a direct subsidy to households, particularly the vulnerable groups,” Adriano said.

The Development Budget Coordination Committee (DBCC) continues to hold weekly and bi-weekly meetings to discuss possible reductions or suspensions of fuel excise taxes. Joint committee hearings are expected to resume when Congress returns to session on May 4.

This policy debate highlights the tension between protecting government revenues and providing relief to households struggling with high fuel prices, with lawmakers pushing for broader coverage while economic managers emphasize targeted support.