DOF wants to simplify taxation for petroleum products

The Philippine Department of Finance (DOF) wants to simplify the taxation for petroleum products, saying that this can raise as much as Php48 billion (US$1.03 billion) yearly, a finance official said. Under the proposal, the government would simplify the taxation on petroleum products to a two-rate structure of between Php3.50 (US$0.08) per liter and Php5 (US$0.11) per liter, instead of the existing multi-rate structure. The source said that the finance department wants to slap the lower excise tax of Php3.50 (US$0.08) per liter to diesel, kerosene, liquefied petroleum gas and fuel oil, which currently have zero tax rates. Other products like gasoline, which is taxed at Php4.35 (US$0.09) per liter would be levied the higher tax rate of Php5 (US$0.11) per liter. The finance department is still refining the proposal, which is still in the early stages of conceptualization, the source said. (July 1, 2010)