The government earned a staggering P35 billion to P40 billion in windfall revenue from value-added tax (VAT) when the price of petroleum products exceeded $ 70 per barrel in the global market.
This was stated by Marikina City Second District Rep. Srekka Luz Quimbo, one of the recognized economists in the House, regarding the discussion by some officials on whether or not to suspend the excise tax on petroleum products or provide monthly assistance worth P200 for the poor.
He said the Department of Finance (DOF) will increase the price of crude oil from $ 135 to $ 140 per barrel which is why the government is making money even if it does nothing.
He also refuted Finance Secretary Carlos Dominguez III’s statement that the government will lose about P105 billion per month in foregone revenues when the excise tax on oil is suspended.
Quimbo pointed out that the P33 billion is actually “one-third” of the P105 billion that Dominguez said would be lost if excise taxes were scrapped due to rising crude oil prices in the world market due to the crisis in Ukraine.

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