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The DOE, in close coordination with the Department of Finance, the Bureau of Customs and the Bureau of Internal Revenue, devised a mechanism to closely monitor existing oil inventories following the implementation of the second tranche of Tax Reform for Acceleration and Inclusion (TRAIN) law on 1 January 2019.
“We are ready to implement the second tranche of TRAIN, which imposes additional excise taxes to various commodities like petroleum products by New Year,” Sec. Cusi said.
Sec. Cusi explained, “We have to ensure the proper implementation of the second tranche of Train, because the new collection will be used to support our ‘Build Build Build’ programs, free tuition fee and medical assistance for our kababayans.”
The energy chief emphasized, “With the imposition of the additional excise taxes, we are stringently looking at the 2018 inventories of oil companies in order to protect consumers from unjust trading and profiteering once the second tranche is operationalized.”
“The sale of old stocks, referring to the remaining balance of the inventory ending 31 December 2018, which was not covered by the second tranche of excise taxes should not be collected from the consumers. Otherwise, it would be a violation of the law- not only administrative penalties like closure of the establishment will be imposed, but also the criminal penalty of large scale estafa,” Sec. Cusi further said.
“We are confident that everyone will cooperate so that we will all have a prosperous new year for 2019,” Sec. Cusi concluded.
The DOE, together with its partners and stakeholders, provided mitigating measures to help consumers cope with the effects of TRAIN Law during its first implementation, such as fuel discounts through the corporate social responsibility and promotional programs, pantawid pasada, energy efficiency tips, rigorous monitoring of gas stations to ensure good quality and right quantity of petroleum products, among other measures.
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