Tinio urges two-pronged response to oil price shock: Suspend excise and VAT now, tax oil cartels’ windfall profits

“The crisis may be global in origin, but the burden is being dumped on Filipino families. Under oil deregulation, the ‘Big 3’ can jack up pump prices overnight based on global speculation—even while selling older inventory bought at lower costs—then the government piles VAT and TRAIN excise taxes on top,” Tinio said. “Hindi dapat singilin ang mamamayan para sa digmaang hindi naman nila ginawa.”

Tinio urged the immediate and unconditional suspension of excise taxes and VAT on all petroleum products to deliver direct, automatic relief at the pump. “Targeted subsidies are always delayed, prone to leakage, and exclude many who need help. Suspending excise and VAT provides immediate, guaranteed relief that lowers transport costs and the prices of basic goods,” he said.

To address revenue concerns raised by economic managers, Tinio proposed a Windfall Profit Tax on oil companies and energy consortiums that reap superprofits during crisis conditions. “If government needs funds for services and infrastructure, then tax the excess profits of those profiteering from disaster—not the daily consumption of workers,” Tinio said. “Ipataw ang buwis sa supertubo ng kartel, hindi sa sikmura ng taumbayan.”

Tinio added that the Windfall Profit Tax must come with strict price controls and transparent inventory auditing to prevent oil cartels from passing the burden back to consumers. “We must do both: cut taxes at the pump to protect the people, and tax windfall profits to make the monopolies pay their share. The administration must choose—will it defend the public, or keep acting as collector for oil cartels and war-driven price shocks?” he ended.###