The Bureau of Internal Revenue (BIR) announced the restoration of excise tax rates on kerosene and liquefied petroleum gas (LPG) effective July 8, citing a Department of Energy (DoE) certification that the average Dubai crude oil price had fallen below the threshold set under law, BusinessWorld reported.
Under the Tax Reform for Acceleration and Inclusion (TRAIN) Law, excise taxes on kerosene and LPG were suspended when Dubai crude prices exceeded $80 per barrel. The suspension, intended to cushion consumers from high fuel costs, ended once prices dropped below that trigger level. The DoE certification confirmed the average Dubai crude fell below $80, prompting the BIR to reimpose the original rates.
The restoration means higher prices for kerosene and LPG, which are widely used by Filipino households for cooking and lighting. The BIR advised consumers and businesses to expect the updated tax rates to be reflected in retail prices. Industry groups have expressed concerns about the impact on low-income families, who rely heavily on these fuels.