Group Presses for Fuel Tax Suspension Over High Inflation Rates Last June 2022

Bagong Alyansang Makabayan (Bayan) is an activist group that is pushing for tax fuel suspension, highlighting that high inflation rates are making the masses more susceptible to financial problems. 

Last Tuesday, July 5, 2022, the group said that economic problems plaguing the poor can be addressed through oil tax cuts and not through targeted subsidies. The targeted subsidies program is currently being pushed by the new government. 

This statement by Bayan comes after the PSA or Philippine Statistics Authority reported that the June 2022 inflation rate hit a three-year high at 6.1%, which was pushed by high food prices. Experts say that this can be attributed to the increased costs of oil prices. 

Bayan Secretary General Renato Reyes said “Pumalo na ng 6.1% ang inflation ng June 2022. Napakataas na tantos ito at pinakabulnerable ang mga mahihirap. Ang nagtutulak ng mataas na inflation ay ang mataas na presyo ng langis at pagkain,” 

Reyes adds that “Marapat na magkaroon na ng suspension ng oil taxes dahil sobrang bigat na ng sitwasyon ng ekonomiya. HINDI sapat ang targeted subsidies. Dapat across the board, lahat ng sektor, ay makinabang sa pagbaba ng presyo ng langis.  Ito ay para bumaba ang production at transportation costs, at para mapababa ang presyo ng iba pang pangunahing bilihin,”

According to Bayan, the VAT or value-added tax on petroleum products should be set aside considering the increased costs of transportation that have led to increases in the prices of electricity and goods. 

Despite the recent rollback of fuel this week, prices for petroleum products remain high at more than ₱80 per liter.  

Source: Inquirer