Gov’t to form task force to determine which projects to slash with suspension of excise tax on oil

October 16, 2018

A task force will be formed to determine which projects and programs of the government will be cut with the expected P41-billion forgone revenue due to the suspension of the second tranche of the excise tax on oil by January next year, officials said on Tuesday.

In a joint press briefing, Finance Secretary Carlos Dominguez III said the Development Budget Coordination Committee ( DBCC) has decided to create a task force "precisely to look in the different items in the budget that can be postponed."

He said with the suspension of the fuel excise tax, this would mean a reduction of the government's revenue of about P41 billion.

However, the increase in the price of fuel will also increase the government's revenue collection, he said. But Dominguez could not give any estimate.

Budget Secretary Benjamin Diokno said he will head the task force, with not more than five members.

He said the task force would look into infrastructure projects which could be postponed.

There will also be possible suspension of the purchase of vehicles and filling up of some positions in government.

Diokno and Socioeconomic Planning Secretary Ernesto Pernia have said President Rodrigo Duterte approved the suspension of the second tranche of increase in the oil excise tax starting January next year as prices of Dubai crude oil could reach or exceed $80 per barrel in the next three months. Celerina Monte/DMS