DOE to oil firms: Use up old inventory first before slapping new tax

Rappler.com
The Department of Energy says oil companies may face large-scale estafa charges if they slap the TRAIN law's new taxes on old stocks in 2020

TAXES. Oil prices will surge anew in 2020 due to the Tax Reform for Acceleration and Inclusion law. File photo by Darren Langit/Rappler

MANILA, Philippines – The Department of Energy (DOE) reminded oil companies to use up their old inventory first before slapping new taxes in 2020 to avoid facing criminal charges like large-scale estafa.

Oil prices will rise again starting January 1, 2020, as the final tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) law takes effect.

Under the law, diesel will rise by P1.50 per liter. Gasoline, kerosene, liquefied petroleum gas, and lubricating oils will go up by P1.

Bunker fuel and petroleum coke will likewise increase by P1.50. (READ: Petron says TRAIN law encouraged illegal business activities)

Ubusin muna ‘yung luma (Finish off old stocks first). That’s normal protocol,” said Energy Undersecretary Jesus Posadas.

The DOE official explained that slapping new taxes on oil produced or imported on or before December 31, 2019 is a violation of the TRAIN law. Companies found doing so would face administrative and criminal penalties, or even closure. – Rappler.com