ENERGY Secretary Alfonso Cusi urged oil industry players to empty first their 2018 oil inventories before applying the second round of the excise tax to petroleum products for 2019.
Cusi said his agency, in close coordination with the Department of Finance, the Bureau of Customs and the Bureau of Internal Revenue, devised a mechanism to closely monitor existing oil inventories following the implementation of the second tranche of Tax Reform for Acceleration and Inclusion (TRAIN) law on January 1, 2019.
“We are ready to implement the second tranche of TRAIN, which imposes additional excise taxes to various commodities like petroleum products by New Year. We have to ensure the proper implementation of the second tranche of Train, because the new collection will be used to support our ‘Build Build Build’ programs, free tuition fee and medical assistance for our kababayans.” Cusi explained.
The energy chief emphasized, “With the imposition of the additional excise taxes, we are stringently looking at the 2018 inventories of oil companies in order to protect consumers from unjust trading and profiteering once the second tranche is operationalized.”
“The sale of old stocks, referring to the remaining balance of the inventory ending 31 December 2018, which was not covered by the second tranche of excise taxes should not be collected from the consumers. Otherwise, it would be a violation of the law -- not only administrative penalties like closure of the establishment will be imposed, but also the criminal penalty of large scale estafa,” Cusi further explained as he called everyone to cooperate to have a prosperous new year for 2019.