MANILA, Philippines — The Commission on Higher Education will work closely with economic managers to ensure that education-related items will not be affected by spending cuts that the suspension of a further increase in fuel excise taxes.
CHED Executive Director Cinderella Jaro said education remains a priority of the Duterte administration, which will have to cut expenses to offset foregone revenues that will stem from the suspension.
"We will be in close coordination with [the Department of Finance] so that the provision for education will somehow not be affected by any deduction," Jaro said in a press briefing in Malacañang.
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The Tax Reform for Acceleration and Inclusion law imposes new taxes on diesel, liquefied petroleum gas, kerosene and bunker fuel for electricity
generation and higher taxes on other oil products. The increase is to be implemented gradually from this year to 2020.
The next tranche of oil excise tax hike that will take effect in January may be suspended if the average price of Dubai crude based on Mean of Platts Singapore reaches or exceeds $80 per barrel for three consecutive months.
While the condition set by law has not been realized, economic managers have agreed to suspend the next round of increase to manage inflation expectations and counter unscrupulous practices like hoarding and profiteering.
READ: Implementation of additional fuel excise tax on hold, Go says
Finance officials have said the suspension could result in P40 billion in foregone revenues next year. The policy-making Development Budget Coordination Committee will form a task force to review expenditures that may be cut or delayed because of the possible reduced revenues.
Jaro said economic managers have not made a decision on the expenditures to be affected by the suspension but said she is optimisc that education-related items would be spared.
"They are just in the process of forming a task force to determine which services...may be deducted...But they still prioritize education," she said.
"The provision for basic services...perhaps it would be their least priority. They will prioritize non-education items," she added.
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