MANILA, Philippines – President Rodrigo Duterte temporarily imposed an additional 10% tax on imported crude oil and refined petroleum products to fund the government’s coronavirus pandemic response.
Duterte’s Executive Order (EO) No. 113 signed on Saturday, May 2, slapped higher oil tariffs as the government searches for more cash for its handouts and economic recovery programs.
The modified rates of import duty will immediately revert to zero should oil prices in the international market increase.
The EO said the trigger price will be determined by the Department of Energy (DOE). The Department of Finance (DOF) would also be notified of the trigger. The Bureau of Customs (BOC) will then issue a memorandum order to revert the rate.
The DOE, in coordination with the DOF, BOC, Department of Trade and Industry, and National Economic and Development Authority, will issue the guidelines for the implementation of the reversal.
The Philippines imports nearly all of its oil requirements.
Acting Socioeconomic Planning Secretary Karl Chua earlier said that the low prices in the global market benefit the Philippines. – Rappler.com