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Fuel marking raises tax collection

The implementation of the fuel making system has deterred oil smuggling in the country, resulting in higher revenue collections for the government, the Department of Finance (DOF) said.

Finance Secretary Carlos G. Dominguez III said the government’s full-fledged fuel marking program has been successfully implemented with over 14.63 billion liters of petroleum products marked as of October.

Dominguez said the fuel marking boosted government revenues by P147.47 billion since the program began in September last year.

“The increase in revenue collection from fuel importation is the best indicator of the program’s success,” Dominguez told reporters when asked if the fuel marking project has prevented smuggling and misdeclaration of oil products.

“Smuggling means those bringing in fuel are not paying taxes for them. Increase in collection from fuel importation would, of course, mean that those importing fuel are now declaring them and paying taxes,” he added.

Data from the DOF showed the Bureau of Customs collected P127.59 billion in duties and taxes from petroleum from September last year to October 29, 2020. while the Bureau of Internal Revenue raised P19.88 billion in excise taxes from fuel during the same period.

Of the total marked fuel products, the bulk or 61.79 percent was from diesel, 37.71 percent from gasoline, and 0.50 percent from kerosene. By location, 74.16 percent came from Luzon, 20.9 percent from Mindanao, and 4.9 percent from the Visayas.

Participating companies include Petron Corp., Pilipinas Shell Petroleum Corp., Unioil Petroleum Philippines Inc., Chevron Philippines Inc., Seaoil Philippines Inc., Phoenix Petroleum Philippines Inc., Insular Oil Corp., Total and Filoil Energy Co., and Jetti Petroleum Inc.

Other participants were Filoil Energy Co. Inc., Marubeni Philippines Corp.,PTT Philippines Corp., Micro Dragon Petroleum Inc., Warbucks Industries Inc., Goldenshare Commerce, and Era1 Petroleum Corp.

High Glory Subic International Logistics Inc., SL Harbor Bulk Terminal Corp., Jadelink Subic Inc., and SL Gas. have also cooperated for the fuel marking program of the government.

Fuel marking is mandated under the Tax Reform for Acceleration and Inclusion Act (TRAIN) as a measure against the smuggling of petroleum products.

Fuel marking is done after the taxes are paid on refined and imported gasoline, diesel and kerosene.


Source: Manila Bulletin (https://mb.com.ph/2020/11/07/fuel-marking-raises-tax-collection/?utm_source=rss&utm_medium=rss&utm_campaign=fuel-marking-raises-tax-collection)

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