MANILA — Senator Loren Legarda called on Malacañang to clarify its position on proposals to suspend the value-added tax (VAT) on fuel, following statements that such a move would require legislation.

“Hindi pwedeng sabihin ng Malacañang na walang batas. Nag-file na ako noon at nag-refile pa ako ulit ngayon, para wala nang dahilan. Ang tanong ngayon: susuportahan nyo ba? I-cecertify nyo ba na urgent? Kung hindi, malinaw na hindi ito prayoridad at ang gusto ng gobyerno ay tuloy-tuloy na buwisan ang krisis.”

Legarda filed Senate Bill No. 2043 on April 15, which seeks to temporarily allow the suspension or reduction of VAT on fuel. She noted that she had earlier filed Senate Bill No. 1942, which proposed suspending both excise tax and VAT on fuel, but this was later considered in the passage of Republic Act No. 12316, which covered only excise tax.

The senator said Malacañang should not pass the responsibility to Congress, noting that the Executive branch had influenced the direction of earlier legislation.

“Huwag ninyo ipasa sa Kongreso ang problema. Noong deliberasyon, malinaw na may mga panukala na sa VAT, pero ang itinulak ninyo ay excise dahil una, mas madali daw ito iimplement at pangalawa, agad din daw itong ipapatupad. Nirespeto namin ang hiling ng Ehekutibo dahil sila ang nakakakita ng datos. Eh hanggang ngayon puro pa din usap, kumbaga sa libro, death-by-meeting, tapos ngayon sasabihin ninyo na walang batas? This administration has an “urgency” and crisis communication problem.”

Legarda also cited discussions during the PROTECT Senate hearing, where oil industry representatives said suspending VAT on fuel is feasible and can be implemented.

She warned that keeping VAT in place during periods of rising fuel prices allows the government to collect more revenue, while consumers bear the burden.

“Kung ibababa mo ang buwis, diretso ang epekto sa presyo. Kung ayuda, dadaan pa sa buong proseso, verification, distribution, matagal. Hindi dapat pinapadaan sa mabagal na sistema ang agarang tulong na puwedeng direkta sa presyo ng petrolyo.”

The senator also questioned the policy of maintaining VAT collections to fund subsidy programs, saying these revenues come from higher costs already shouldered by consumers.

“Hindi ito usapin kung may pondo o wala. May windfall gains na nga, at sinabi na rin ng pamahalaan na may humigit-kumulang ₱230 bilyong fiscal space. Kung kinakailangan, maaari ring magdeklara ng savings ang mga ahensya mula sa mga proyektong hindi na maipapatupad ngayong taon o yung hindi naman emergency, gaya ng travel, capacity-building activities, events, at iba pang gastusing puwedeng ipagpaliban sa pamamagitan ng mas matalinong paggastos. May kakayahan ang gobyerno na rumesponde sa krisis. Ang tunay na tanong: gagamitin ba ito para agad mabawasan ang pasanin ng mamamayan, o patuloy bang bubuwisan ang krisis bago ibalik bilang ayuda? Para sa akin, hindi dapat binubuwisan ang hirap ng tao.”

Legarda said the issue ultimately comes down to a policy decision on whether to immediately reduce fuel costs or continue collecting taxes during a crisis.