The Department of Energy (DOE) does not have the authority to suspend value-added tax (VAT) and excise tax on petroleum products, according to DOE Officer-in-Charge Sharon Garin.
Garin made the clarification following growing calls to lift fuel taxes amid the looming threat of a major oil price hike due to tensions in the Middle East.
She emphasized that such taxes are mandated by law, and the DOE cannot arbitrarily suspend them.
Instead, she said it is the Philippine Congress that must act if amendments to existing laws or tax abolition are necessary.
Several groups have called for the suspension of excise and VAT on petroleum products to cushion the impact of a potential oil price surge.
Garin revealed that the matter had been discussed in a meeting with President Ferdinand Marcos Jr. and key economic managers.
However, she pointed out that current laws do not provide for a fuel tax suspension—only for the deferral of fuel price increases.
The former legislator also noted that the government collects approximately ₱300 billion from excise and VAT on fuel annually, funding infrastructure, school buildings, and essential health services.