Explanation of Impact of Excise Tax

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  • Topic: Petroleum, Tax, Indirect tax
  • Pages : 30 (6479 words )
  • Download(s) : 23
  • Published : March 15, 2013
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|AN ACT INCREASING THE EXCISE TAX RATES ON PETROLEUM PRODUCTS, AMENDING FOR THE PURPOSE SECTION 148 OF THE | | |NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED | | |[pic] | | |Republic of the Philippines | | |HOUSE OF REPRESENTATIVES | | |Quezon City, Metro Manila | | |  | | |THIRTEENTH CONGRESS | | |FIRST REGULAR SESSION | | |  | | |House Bill No. 1323 | | |  | | |  | | |Introduced by HONORABLE DANILO E. SUAREZ | | |  | | |  | | |EXPLANATORY NOTE | | |  | | |The biggest problem confronting the government is the chronic fiscal deficit that prevents it from spending | | |its financial resources to essential socio-economic programs and projects. | | |  | | |Congress therefore is faced with the challenge of coming up with legislative measures which could help solve | | |the problem, or at the very least abate or mitigate the impact of the problem. No less than President | | |Gloria Macapagal-Arroyo stressed the need to legislate policy initiatives which focus on the improvement of | | |the system of taxation in 1he country. One important area which needs to be considered is the relevance and | | |responsiveness of the tax rates, given our current economic conditions | | |  | | |The excise tax on petroleum products was last amended in 1996 by Republic Act 8184 which restructured the | | |system by introducing the specific form of taxation. Since then, not a single amendment was forwarded. The | | |existing rates have not been adjusted ever since. Considering inflationary pressures, these rates are already | | |obsolete to the present times. This proposal addresses this limitation by increasing the rates on petroleum | | |products by P2.00, in the process, amending the relevant provisions of Sec. 148 of the National Internal | | |Revenue Code of 1997, as amended. | | |  | | |We also take into consideration the social implications of these proposed adjustments....
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