MANILA — Senator Erwin Tulfo is calling for the removal of value-added tax (VAT) on petroleum products, saying that the suspension of excise taxes alone is not enough to ease the impact of rising fuel and commodity prices on Filipinos.

During the Senate Proactive Response and Oversight for Timely and Effective Crisis Strategy (PROTECT) ad hoc committee hearing on Monday, April 13, 2026, Tulfo said the current excise tax reduction would benefit vehicle owners but would not significantly ease costs for the broader public.

“May mga nagsasabi po, Mr. Chair, na yung pag suspinde po sa excise tax na ipinasa po natin dito, isinumite na po sa Pangulo, will not be sufficient,” Tulfo said.

He described the 10 percent excise tax reduction as having limited impact on consumers, noting that it may be more symbolic than substantial.

“Pero actually, hindi po talaga mararamdaman ng mga tao po ito, itong 10 percent reduction na excise tax,” he said.

Tulfo said the benefits would be more noticeable only if VAT is also removed.

“Mararamdaman po ito kung yung VAT din and aalisin din po natin. But if we remove excise tax sa mga gasolina, mararamdaman po ng konti yun ng mga may sasakyan.

But yung mga nag-commute po, hindi nila mararamdaman po ito,” he added.

He cited Senate Bill No. 1935, which proposes automatically suspending VAT on petroleum products once the average price of Dubai crude oil, based on the Mean of Platts Singapore (MOPS), reaches $80 per barrel.

The measure also seeks to suspend VAT on imported petroleum products and halt excise tax collection when global oil prices reach or exceed the same threshold.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said the agency is studying the potential fiscal impact of the proposals.

President Ferdinand “Bongbong” Marcos signed Republic Act No. 12316 on March 25, granting him emergency powers to suspend or reduce excise taxes on fuel.

Under the law, any cut in excise tax on diesel and gasoline will take effect 15 days after signing.