CHED: Education remains gov’t priority

MANILA, Philippines — The Commission on Higher Education (CHED) will be working closely with economic managers to ensure that education-related items will not be affected by the expenditure cuts to be implemented in case the increase in excise taxes on oil is suspended.

CHED executive director Cinderella Jaro said education remains a priority of the Duterte administration, which is eyeing to cut expenses to offset the foregone revenues that will stem from the planned 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 at Malacañang yesterday.

The Tax Reform for Acceleration and Inclusion (TRAIN) Law imposed excise taxes on diesel, liquefied petroleum gas, kerosene and bunker fuel for electricity generation and higher taxes on other oil products. The increase will be implemented gradually starting January 2019 until 2020.

The excise tax hike 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 the law has not been realized, economic managers initially agreed to suspend the next round of increase to manage inflation expectations and counter unscrupulous practices like hoarding and profiteering.

Finance officials have said the suspension could result in P40 billion in foregone revenues next year. The 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 expressed optimism 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 would be their least priority. They will prioritize non-education items,” she added.