P218.05 Billion Pumped Into Govt Coffers Via Fuel-Marking Tack

An unidentified rider on a bicycle passes by the Department of Finance building.

 

THE government has so far collected P218.05 billion (about $4.51 billion at current exchange rates) in duties and taxes from the implementation of its fuel-marking program for nearly two years.

 

Of the total duties and taxes collected from September 2019 to April 15, the bulk or P190.18 billion was collected by the Bureau of Customs while the remaining 27.87 billion came from the Bureau of Internal Revenue.

 

A document from the Department of Finance showed that during the period, 22.4 billion litters of fuel were marked by the government.

 

Most of the fuel marked was diesel, cornering 60.73 percent or 13.6 billion litters followed by gasoline with 38.74 percent or 8.68 billion litters and kerosene with 0.54 percent or 120.02 million litters.

 

By region, Luzon has the lion’s share of fuel marked with 73.68 percent or 16.5 billion litters of fuel. Next is Mindanao with 21.08 percent or 4.72 billion litters and the Visayas with 5.24 percent or 1.17 billion litters.

 

The DOF said 23 companies participated in the fuel marking program.

 

Leading the list of companies that had their fuel marked was Petron Corp. with a 22.47-percent share in the total volume of marked fuel or five billion litters.

 

Following Petron are the following firms: Pilipinas Shell Petroleum Corp. (19.63 percent or 4.397 billion litters); Unioil Resources & Holdings Co. Inc. (10.44 percent or 2.34 billion litters); Seaoil  Philippines Inc. (8.26 percent or 1.85 billion litters); and, Phoenix Petroleum Philippines Inc. (7.68 percent or 1.72 billion litters).

 

In February, House Ways and Means Committee Chairman Albay Rep. Joey Salceda revealed that the government lost P357 billion from 2010 to 2019 due to fuel smuggling.

 

While Salceda said while fuel marking helped lower smuggling, foregone revenues are still rising because the Tax Reform for Acceleration and Inclusion law raised taxes on fuel products in 2018.

 

Fuel marking makes use of a unique chemical marker that can be embedded at a molecular level in petroleum products—gasoline, diesel, and kerosene—thereby enabling authorities to test, identify and distinguish petroleum products with paid excise taxes.

 

Under Republic Act 10963 (or TRAIN law), petroleum products that are refined, manufactured, or imported to the Philippines such as, but not limited to, unleaded premium gasoline, kerosene and diesel, shall be marked by an official marking agent after payment of taxes and duties.

 

The fuel-marking program was launched with the aim of halting illegal importation, manufacturing, and other fraudulent activities relating to the use and sale of petroleum products in the country.

 

Main article here.

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