The government is expected to raise P20 billion and boost the country’s war chest against the pandemic following President Duterte’s order to add a 10-percent duty on crude oil and refined products.

Bureau of Customs (BOC) spokesperson and Assistant Commissioner Vincent Philip Maronilla told the Inquirer that the President’s directive, also now prescribed in a just released memorandum circular, would allow the bureau to collect about P20 billion in additional tax revenues.

Commissioner Rey Leo­nardo Guerrero issued Customs Memorandum Circular No. 125-2020 on May 5, telling all deputy commissioners and district and port collectors to implement Executive Order No. 113, which temporarily modified the rates levied on imported crude petroleum oil and refined petroleum pro­ducts starting May 6.

Guerrero said these oil imports, “regardless of the country of origin, which are entered and withdrawn from warehou­ses in the Philippines for consumption” would be subjected to the temporary additional duty aside from the existing most favored nation and preferential import

duties.

“For petroleum products covered under the fuel marking program of the BOC, all district and port collectors must ensure that the additional 10-percent import duties as provided by EO 113 are assessed, levied and paid, prior to fuel marking,” Guerrero said.

Under the fuel marking guidelines issued last year, the BOC would be conducting fuel marking in depots, tank trucks, vessels, warehouses and other fuel-transporting vehicles.

The fuel marking program—whereby a chemical marker is injected into tax-paid goods—covers all taxable oil products, except Jet A-1, Avgas, crude oil and liquefied petroleum gas.

The latest executive fiat noted the Customs Moderni­zation and Tariff Act (CMTA) empowered the President to adjust oil import duties “in the interest of general welfare and natural security.”

In issuing EO 113, the govern­ment said the six-month state of calamity due to the new coronavirus disease (COVID-19) pandemic entailed more money to fund the social amelioration program and other safety nets to be extended to vulnerable sectors, such as poor households and temporarily displaced workers.

Guerrero reminded the BOC personnel that under the CMTA, “imported goods shall be subject to the import duty rates under the applicable ta­riff heading that are effective at the date of importation or upon withdrawal from the warehouse for consumption.”

“EO 113 shall remain effective until such time that Republic Act No. 11469, or the Bayanihan to Heal as One Act ceases to take effect, or upon the reversion of the modified rates of import duty to zero percent as international oil prices increase, whichever is earlier,” Guerrero said.

Read Next

EDITORS’ PICK

MOST READ

Don’t miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

For feedback, complaints, or inquiries, contact us.

Source Article