What's the difference between excise tax and VAT - and why we pay both | DZMM TelaRadyo скачать в хорошем качестве

What's the difference between excise tax and VAT - and why we pay both | DZMM TelaRadyo

Courtesy Of DZMM Teleradyo. Marikina 2nd District Rep. Miro Quimbo, chairperson of the committee on ways and means, explained Friday the difference between the excise tax on fuel products and the value added tax - and why the public pays for both. Speaking to DZMM, Quimbo said VAT is similar to a sales tax while the excise tax is “like a punishment for using cars that pollute the air.” “Para siyang mala-parusa. You are performing an act, something that the state wants to discourage… people from bringing cars,” he said. He cited as an example why the government does not impose an excise tax on watching movies, “but there is an excise tax on smoking cigarettes.” Under the Tax Reform for Acceleration and Inclusion Law the following excise tax rates are imposed on different fuel products: Gasoline: P10.00 per liter. Diesel: P6.00 per liter. Kerosene: P5.00 per liter. LPG: P3.00 per kilogram. After this, a 12 percent VAT is also slapped on fuel prices. President Ferdinand Marcos Jr has said he would like to ask Congress for emergency powers to suspend the excise tax on fuel amid rising oil prices. The proposal is one of several measures eyed on mitigating the effects of oil price hikes including staggered price increases, moves to a 4-day workweek, and even carpooling. Oil crisis plan: Staggered price increases, excise tax cuts, 4-day work week The Philippines consumes almost 500,000 barrels of oil daily and is ranked 32nd in the world for the highest consumption of oil. “Magising na tayo sa katotohanan: The Philippines is practically 100 percent import-dependent pagdating sa langis,” Quimbo said. “We are extremely affected every time the Middle East sneezes and catches a cold because we don’t have our own indigenous source of petroleum,” he added in Filipino. In the interview, Quimbo said soaring oil prices could have a domino effect on everything including transportation fare, electricity and basic goods. He urged the Department of Energy to strictly monitor oil companies, noting that local players increase prices just a few days after Dubai crude goes up. “Pero pag bumaba ng $2, $25 or $30, hindi naman natin maramdaman. Kailangang imbestigahan yan kung may pandaraya dahil it doesn’t make sense,” he said. Quimbo said granting the President emergency powers to cut fuel excise taxes is possible if oil prices exceed $80 a barrel for 3 months or if he declares a state of calamity as a result of spiraling oil prices. He noted the emergency powers cannot exceed 6 months, adding that the President must explain to Congress the possible effects of the cut in excise taxes. For more Breaking News & Live Coverage videos, click the link below:    • Breaking News & Live Coverage   For more latest news and analysis from ABS-CBN News videos, click the link below:    • The latest news and analysis from ABS-CBN ...   For more News Digital News Raw Cuts, click the link below:    • News Digital Raw Cuts   Subscribe to the ABS-CBN News channel! - http://bit.ly/TheABSCBNNews Watch full episodes on iWant for FREE here: http://iwanttfc.com Visit our website at http://news.abs-cbn.com Facebook:   / abscbnnews   Twitter:   / abscbnnews   Instagram:   / abscbnnews   #Balita #NewsHighlights #DZMMTeleradyo