Fuel Marking Generates P60.2B Revenue for BOC in Q1

PHOTO FILE APPLICANT

MANILA, Philippines — The Bureau of Customs (BOC) collected 60.2 billion pesos in import duties and other taxes on petroleum products during the first quarter, thanks to 4.7 billion liters of tagged fuel.

In a statement on Monday, the BOC said its first-quarter oil tax levies brought its collections under the fuel-marking program, which it launched in September 2019, to a cumulative 374.1 billion pesos. .

At the end of March, it marked a total of 39.3 billion liters of petroleum products, with a chemical signifying correct tax payments

The Philippines imports most of the oil it uses.

“Diesel accounted for 60.5% of the total tagged volume, followed by gasoline with 38.9% and kerosene with 0.5%. As for location, 73.7% of the tagging was in Luzon, 20.9% in Mindanao and 5.4% in the Visayas,” the BOC said.

Currently, 28 oil companies participate in the fuel labeling program implemented jointly by the BOC and the Bureau of Internal Revenue (BIR).

To date, the country’s two largest tax agencies have confiscated 93,043.8 liters of diesel, 18,839 liters of kerosene, as well as two tankers carrying unmarked fuel with an estimated value of 13.4 million pesos, the BOC said.

“The tanks at 12 gas stations and two private companies where the BOC found these unmarked fuels were also sealed and recommended for filing criminal cases,” he added.

“The BOC will continuously implement its mandate to mark petroleum products under the Fuel Marking Program to increase revenue while curbing fuel smuggling and leveling the playing field in the Philippine petroleum industries” , did he declare.

Before the Acceleration and Inclusion Tax Reform Act (TRAIN) came into force in 2018, which implemented fuel marking, government and industry estimates had shown that the lack annual revenue from oil smuggling was equivalent to more than half of the actual duties and taxes collected by the BOC and BIR, or about 27 to 44 billion pesos per year.

Excess collections of the 12% Value Added Tax (VAT) levied on petroleum products would partly fund the total of 47.5 billion pesos in aid to the sectors hardest hit by expensive oil amid the war between Ukraine and Russia. At an average world oil price estimated at $110 a barrel in 2022, the government had expected to collect an additional 26 billion pesos in VAT this year.

Of the BOC’s record monthly collection of 70.7 billion pesos in March, 26.5 billion pesos came from import duties and other taxes imposed on expensive oil, said Finance Secretary Carlos Dominguez III .

RELATED STORIES

Unioil expects diesel to increase by P8 per litre, petrol by P3 per liter

Progressive groups hold a peaceful rally against rising fuel prices

Electricity Rates in Metro Cebu Set to Rise in April

Subscribe to our regional newsletter

Read more

Warning: Comments uploaded to this site do not necessarily represent or reflect the views of the management and owner of Cebudailynews. We reserve the right to exclude comments that we deem inconsistent with our editorial standards.