Groups call for fuel tax suspension, say cash aid is just a ‘temporary’ fix

MANILA, Philippines—Labor groups on Thursday said the new round of cash aid that will be given to low-income households affected by the energy crisis is only a “temporary” measure.

It is urging the government to suspend excise and value-added taxes (VAT) on petroleum products instead.

“If the government has this much money, they should have just removed excise and value-added taxes,” Julius Cainglet, vice president for research, advocacy and partnerships of the Federation of Free Workers, said in Filipino during an interview with the Inquirer.

Article continues after this advertisement

“We think that will have more impact compared to the cash aid which is just a band-aid solution,” he pointed out.

FEATURED STORIES

NEWSINFO

NEWSINFO

NEWSINFO

Cainglet was responding to President Marcos’ announcement that 7.5 million households, or 37.5 million Filipinos, across the country will benefit from a new round of cash assistance to be distributed.

The aid is meant to ease the impact of rising oil prices resulting from the Middle East conflict.

READ: Marcos: New cash aid for 7.5M poor households amid oil price hike

According to the president, 1.5 million low-income workers and their families will receive P2,000 per month from July through December, totaling to P12,000 each.

Article continues after this advertisement

A one-time additional cash assistance of up to P2,000 will also be granted to 3.5 million beneficiaries of the Pantawid Pamilyang Pilipino Program and the Walang Gutom Program under the Department of Social Welfare and Development.

Assistance will also be given to 2.5 million poor and near-poor households identified through the 2024 Community-Based Monitoring System.

Article continues after this advertisement

READ: DSWD warns public vs online cash aid scammers asking for contact details

Sonny Matula, chair of the Nagkaisa Labor Coalition, said the cash assistance will help workers, but said that it should be complemented with other initiatives.

These initiatives include the temporary suspension of excise taxes and VAT on petroleum products.

“The VAT and excise taxes on petroleum products, if it can be removed for now while oil prices are still high, that can be one option as an addition to the P2,000,” he told the Inquirer.

“Prices of basic goods should also be monitored,” he suggested.

Last week, the Bureau of Internal Revenue said the suspension of excise taxes on kerosene and liquefied petroleum gas has been lifted after the average Dubai crude oil price fell below the $80-per-barrel threshold.

The suspension was implemented through Executive Order No. 14 that was signed on April 16.

The labor groups also renewed their calls for a P200 legislated wage increase, noting that the government can provide assistance to businesses who may not be able to shoulder the wage hike.

READ: Over 200,000 PUV drivers receive cash aid in Calabarzon – DSWD

In a separate statement, the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) welcomed the new round of cash assistance.

At the same time, it said the government should also address various problems affecting the labor sector, such as low wages and lack of quality jobs.

“The recurring need for ‘ayuda’ (aid) whenever oil prices rise exposes the structural weaknesses of the Philippine economy—persistently low wages, the lack of quality wage and salaried jobs, an underdeveloped productive base, and excessive dependence on imported fossil fuels,” the group said.

“Millions of minimum wage earners, contractual workers, informal workers, transport workers, and lower-middle-income families who are also squeezed by inflation may receive no assistance at all,” it observed.

“The best social protection remains decent work with living wages,” it added.

Sentro urged the government to provide quality employment by improving the country’s manufacturing sector and other industries, legislating a “meaningful” wage increase,” and strengthening the rights of workers to organize and bargain collectively. /apl

Your subscription could not be saved. Please try again.

Your subscription has been successful.