Higher oil tax encourages smuggling

Several groups have expressed concern about the proposal of the Department of Finance to impose higher excise taxes on oil and gas products, saying this could put undue burden on ordinary Filipinos and worse, encourage more smuggling.

According to Finance Secretary Sonny Dominguez, as much as P6 per liter could be levied on diesel and other products like bunker fuel, kerosene and liquefied petroleum gas which are currently exempt from excise taxes. Meanwhile, as much as P10 increase in excise taxes for the first year is being mulled for regular gasoline, aviation fuel, leaded and unleaded premium gasoline and other oil product.