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Fuel marking in full swing by Q1 2021

  • The fuel marking program is expected to be fully operational nationwide by Q1 2021
  • From Sept 2019 to Jan 6, 2021, 17.73 billion liters of fuel has been marked under the program
  • From Sept 2019 to Jan 4, 2021, the Bureau of Customs collected P149.36 billion of duties and taxes while the Bureau of Internal Revenue took in excise taxes of P23.94 billion from Dec 2019 up to Dec 28, 2020

The Department of Finance (DOF) expects the fuel marking program, including its enforcement activities to curb smuggling, to be fully operational nationwide by the first quarter of this year.

From September 2019 to January 6, 2021, the government has marked 17.73 billion liters of fuel under the program, DOF said in a statement.

From September 2019 to January 4, 2021, the Bureau of Customs (BOC) collected P149.36 billion of duties and taxes under the fuel marking program.

The Bureau of Internal Revenue (BIR), meanwhile, took in excise taxes of P23.94 billion from December 2019 up to December 28, 2020.

Marking of fuel products, whether imported or manufactured in the Philippines, will become mandatory five years after the Tax Reform for Acceleration and Inclusion (TRAIN) law took effect January 2018. Fuel marking aims to curb oil smuggling and plug revenue losses arising from the illegal importation or misdeclaration of petroleum products.

BOC earlier said it is gearing up, together with sister agency BIR, to implement the field testing phase of the program in 2021, wherein diesel, gasoline and kerosene found in retail stations, tank trucks, vessels, depots and warehouses will be tested for compliance.

The agency said a significant increase in volume declarations in gasoline, diesel and kerosene has been observed with the implementation of the fuel marking program.

In 2017 and 2018, total volume declarations were 7.75 billion liters and 6.31 billion liters, respectively, equivalent to P26.88 billion and P39.79 billion, respectively, in duties and taxes collected.

In 2019, total volume declaration was 11.16 billion liters, 77% higher than the previous year’s volume declaration. Duties and taxes collected amounted to P111.18 billion, a 179% surge from those collected in 2018.

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