The third wave of excise tax increases under the tax reform law has taken effect, but oil companies should not immediately increase their prices, the energy department warned.
Energy Undersecretary Wimpy Fuentebella, in a phone interview with CNN Philippines, explained that the excise tax increase would only apply to fuel bought in 2020. It should not apply until gas stations have used up their old stocks from last year. "Only if they're already selling the new stock to the consumer. Kailangan makita yung pagka-ubos ng old stocks para ma-impose nila ang excise tax," Fuentebella said.Companies that increase prices without using up their old stock could be penalized.
"It’s not just administrative penalties from the Department of Energy tulad ng pagpapasara ng gasoline station. But also, BIR will go after them for violation of tax laws and the DOJ can go after them for a criminal case," Fuentabella added.The final tranche of excise tax increases on fuel will take effect Wednesday, January 1, 2020.