Rising cost of fuel prompted a proposal in the Senate to reduce fuel import tax in half, to 2.5 cents per gallon.
Citing the pandemic impact on global supply chains and the recent hostilities in Ukraine initiated by Russia, Senate bill 11-62 said that people are having difficulty coping with the financial burden resulting from rising fuel prices.
To address the high cost of fuel, Senate proposes cutting the current import tax on liquid fuel and liquid petroleum products by 2.5 cents. Current import tax rate on petroleum is 5 cents per gallon.
The proposal, if passed into law, would amend the current fuel tax rate of 5 cents per gallon. Although the current law will be changed next year with when the new tax law, the PGST or comprehensive tax reform act takes effect and in that law, the rate will increase by 10 to 15 cents per gallon.
The proposed bill passed 1st reading in the Senate and assigned to Senate Ways & Means Committee. The bill is authored by Senator Jonathan “Cio” Isechal.