DOE Assures Fair Implementation of TRAIN Law

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As the implementation of the second tranche of the TRAIN Law for petroleum products took effect starting 1 January 2019, the Department of Energy (DOE) yesterday assured the public it has taken measures to prevent abuse and ensure fair and effective implementation of the taxation scheme.

“The Department of Energy is mandated to ensure that the pricing of oil products is carried out within the parameters of the TRAIN Law,” Energy Secretary Alfonso G. Cusi said in a statement.

He added, "Over the process of the implementation of the first tranche of the TRAIN Law, we have reached out to our stakeholders, especially the oil companies for their cooperation and we will continue our coordination with them throughout the second tranche."

He stressed that the DOE will be even more vigilant in monitoring the implementation of the second tranche of the TRAIN Law for petroleum products.

“We will ensure the fuel stocks for 2018 will be utilized first and sold at the pre-implementation prices,” Sec. Cusi said.

As a result of its stringent monitoring operation, the Department has already asked several gas stations to explain why they implemented fuel price hikes as early as 2 January 2019.

Under the second tranche of TRAIN Law's implementation, an additional excise tax of P2.00 will be imposed per liter of diesel and gasoline, and P1.00 per kilogram on Household LPG. There will also be an additional 12 percent value added tax, which totals to P2.24 for both diesel and gasoline, and P1.12 for LPG.

However, the DOE pointed out that the increase in pump prices of petroleum products resulting from the imposition of the second tranche of fuel excise tax will still be smaller. This is due to the offsetting effect of the rollbacks implemented in 2018 and January 2019.

While there is an uptick in the price of oil in the world market, Sec. Cusi pointed out that industry forecasts do not see crude oil prices hitting record high prices, such as in October 2018 when Brent crude oil price breached the $80 per barrel level.

“If the trend continues, we do not expect it to have as much impact on fuel prices as it did last year. Besides, we can cushion the effect of any new oil price increases by becoming more efficient in our use of energy,” he said.

Through its E-Power Mo movement, the DOE has been providing the public with tips for an energy-efficient lifestyle, particularly in the use of fuel and electricity.

"We might have to spend a little more, but that little sacrifice would translate to huge benefits for the country,” the energy chief emphasized.

“Let us remember that the revenues from TRAIN will fund important programs, such as free education, increase in the salaries of our public school teachers, as well as crucial infrastructures under the ‘Build, Build, Build program. All these would sustain our economic growth towards Ambisyon 2040 by providing more jobs and livelihood opportunities for our people,” Sec. Cusi concluded.

Cusi on Fuel Excise Tax Implementation: Cooperate, Don’t Violate

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Department of Energy (DOE) Secretary Alfonso G. Cusi emphasized the urgent need for all petroleum retail outlets to heed the implementing guidelines on the second tranche of fuel excise tax, or face closure.

“The Secretary has been very clear - cooperate, don’t violate. We have been actively explaining and clarifying the implementation process for this second tranche. Dahil klaro ang lahat, mas mainam na tayo’y sumunod kaysa naman kapapasok pa lang ng bagong taon, isasara tayo,” DOE Spokesperson Felix William B. Fuentebella said in a press briefing held yesterday (7 January) at the agency’s headquarters.

(Given that everything is clear it is better that we follow rather than close down at the start of the new year.)



STRINGENT MONITORING OF OIL STOCKS

Oil Industry Management Bureau OIC-Director Rino E. Abad and Assistant Director Rodela I. Romero further explained that since last year, the DOE has undertaken steps to ensure the stringent monitoring of inventories in anticipation of the second tranche’s implementation.

A DOE directive dated 11 September 2018 required oil companies to submit per-depot and per-product ending inventory reports as of 31 December 2018 and daily withdrawal reports of such ending inventories starting 1 January 2019 until its full exhaustion. This ensures that the first tranche of excise tax will continue to be imposed on the 2018 ending inventories, while the second tranche of excise tax shall be imposed only on new inventories imported or produced from local refineries in 2019.

In addition, oil firms were also required to submit a notarized Year-End Inventory Report (as of 31 December 2018) covering petroleum products with the old excise tax rate. Said reports are to be submitted by 8 January 2019 in time for the submission of the Official Registry Book to the Bureau of Internal Revenue (BIR).

“These will help the DOE validate the exhaustion of old inventories. We also requested for Last Withdrawal Certificates stamped by the BIR as ‘Stocks On-Hand Prior to Applicable Date of Effectivity’. These would indicate the last removals of petroleum products subject to the old tax rates. On the other hand, the First Withdrawal Certificates with no BIR stamp would indicate the first removals of petroleum products with the new excise tax rate,” Asst. Dir. Romero expounded.

On violations, Director Abad stressed that aside from breaching tax laws, violators may also face criminal charges, particularly estafa.

Other measures being carried out by the Department include the inspection of retail outlets that already implemented the new excise tax, and the issuance of Show-Cause Orders to give concerned retail outlets the opportunity to explain.



CONSUMER POWER OF CHOICE

USec. Fuentebella emphasized that “Consumers need to be aware. The DOE asked retailers to display notices of the additional excise tax implementation in a one-meter by one-meter tarpaulin for transparency. This would empower the consumers with the ability to choose where to buy fuel.”

He added, “Do I go ahead and buy from this station already implementing the new excise tax, or do I gas up somewhere else? This is another exercise in consumer empowerment.”



TOWARDS ‘AMBISYON 2040’

The DOE continues to assure the public that it is closely monitoring the fair implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“We are watching closely and coordinating with the BIR and the Bureau of Customs to ensure accurate data reporting and monitoring. As Secretary Cusi said earlier, we should recognize the value of proper tax remittance. The revenue collected by the government will finance the establishment of key infrastructure, provide educational assistance, as well as other forms of poverty alleviation for our people,” the Energy Undersecretary asserted.

Czech Drama “Little Girl Blue” screening in Manila

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Gracing the Filipino audience with the final installation for the year-long “Czech Movie Gems” film festival, the Czech Embassy in Manila and the Film Development Council of the Philippines is proud to bring the Czech drama, “Little Girl Blue” (2007), awarded as the “Best Film” in the Czech Lion Award of 2007.

Produced by Oscar winning director Jan Svĕrák, this film written and directed by Alice Nellis reveals a poetic tale of Julie, a forty-year old translator woman in the midst of an expansive mid-life crisis in the changing city of Prague. Witness how her seemingly perfect and happy family life traverses a crossroad after one passing unveils her to impulsively reflect on her mechanical married life that led her to pursue life-altering decisions.

Played by Iva Bittová, a Czech avant-garde violinist, singer, and composer who started her career as an actress, Julie’s life was also filled with significant decision initiated by her choice to purchase a used piano for the vast living room. The film also stars Karel Roden, a notable Czech actor successful both in his home country and in Hollywood.

Aside from the story line, the cinematography also asserts a sensible and witty portrayal of sparkly images accompanied by life thrumming tunes that perfectly frolic with each scene.

The film is set to be screened on Wednesday, January 16, 2019 at 6:30 pm in Cinematheque Center Manila. This is the final film for the year-long Czech Movie Gems which aim to bring award-winning movies to Filipino audience on the occasion of 100 years of independence of Czech statehood.

Admission is free. Seating is on a first-come, first-served basis, subject to capacity.