(Eagle News) – President Rodrigo Duterte has issued an executive order providing for the temporary increase of import duty on petroleum products, in an effort to augment the government’s resources in combating COVID-19.
Under Executive Order No. 113, a “temporary additional import duty of ten percent (10%)” will be imposed on imported crude oil and refined petroleum products, on top of existing import duties.
“[T]here is an urgent need to augment the Government’s resources to sufficiently finance the programs and measures to mitigate the effects of the COVID-19 situation, and launch the country towards recovery and rehabilitation”, the EO stated.
The Department of Energy, in coordination with the Department of Trade and Industry, National Economic Development Authority and the Bureau of Customs, were directed to promulgate the guidelines to implement the order.
Meanwhile, the Department of Budget and Management was directed to study and implement measures “to ensure that the proceeds derived from the temporary additional import duty shall be used to fund measures that address and respond to the effects of the COVID-19 situation”.
Under the EO, the increased import duties “shall immediately revert to zero percent (0%) as international oil prices increase, based on trigger prices indexed to oil prices in the world market”, upon certification by the DOE and notification to the Department of Finance.
Eagle News Service
