DOF sees cut in PUJ fuel subsidy if gov’t suspends hike in excise tax on oil
MORE GROANS AT THE PUMP A gas station attendant fills up the diesel tank of a jeepney in Quezon City. INQUIRER file photo / GRIG C. MONTEGRANDE
The fuel subsidy for jeepney drivers in 2019 would be reduced to half if the excise tax increase on oil would be suspended, a finance official said Wednesday.
Jeepney drivers are supposed to receive P20,515 in 2019 under the government’s Pantawid Pasada. The Land Transportation Franchising and Regulatory Board (LTFRB) has alloted P5,000 subsidy to each jeepney drivers for 2018 over six months.
The government’s economic managers have announced that President Rodrigo Duterte would suspend the second round of higher excise tax on fuel under the Tax Reform for Acceleration and Inclusion (TRAIN) law, following the record-high inflation in the country.
With this, Finance Assistant Secretary Tony Lambino said the Department of Budget and Management (DBM) has made some adjustments on the fuel subsidy.
“Yung pagtaas po kasi ng Pantawid Pasada would have been up to around P20,000 initially kung tuloy po ang increase ng excise,” Lambino said in a press briefing in Malacañang.
Article continues after this advertisement“Instead of quadroupling the amount, dodoblehin na lang po. So instead of P5,000, it will be P10,000 Pantawid Pasada grant for 2019,” he added.
Article continues after this advertisementDuterte has yet to issue an order on the suspension of the fuel tax rate hike.
“Hindi pa po final kung ano po ang magiging mekanismo para i-lift yung suspension,” Lambino said.
“So it will be half of what’s in the budget so far but also it will be doubled than what was received this year kasi nga po six months yung pantawid Pasada ngayong 2018,” he added. /jpv
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