Isko Moreno vows 50% fuel, electricity tax cut if elected

TARLAC CITY, Philippines — Manila Mayor Isko Moreno yesterday urged the national government to lower the excise tax on electricity and petroleum products as this will translate into immediate and tangible economic relief for ordinary Filipinos, particularly farmers, fishermen and public utility vehicle drivers and operators.

Moreno made the call during a town hall meeting in Barangay Banaba here, where he met 100 farmers and agricultural workers to listen to their problems and suggestions on how to increase income and productivity.

He said that, if elected president next year, he is committed to cut the excise tax on petroleum products by 50 percent as this would directly benefit the poor and the middle class who have been at the receiving end of the weekly price increases of crude oil.

Moreno also plans for a 50-percent tax break on electricity to benefit consumers and business enterprises.

“To cushion the socio-economic impact of the pandemic, a 50-percent reduction in fuel excise tax can lower the power generation cost and another 50-percent cut on taxes on electricity would mean savings for the majority of our people, many of whom are jobless now due to the COVID-19 pandemic,” he said.

He noted that the positive effects of a tax cut on fuel would be immediately felt by operators and drivers of PUVs.

“If we implement a tax cut on gasoline and petroleum products, we can expect more jeepneys plying their routes and they will earn more since there will be more commuters who are going to their places of work. When drivers earn more, they will have more buying power and this will further perk up the economy,” he explained.

Moreno also said that a 50-percent tax cut on electricity would mean more food on the table and more money to spend on basic needs, including medicines.

He stressed that the never-ending increase in the prices of gasoline, diesel and kerosene has triggered demands from transport groups, drivers and operators of PUVs for a transport fare hike.

Economists have forecast that the rate of increase in the prices of basic commodities could rise to six percent next month.