Saturday, September 25, 2021
HomeCustoms & TradeFuel marking nets P74.7B in taxes in 1H

Fuel marking nets P74.7B in taxes in 1H

  • A total of 8.35 billion liters of fuel were marked and P74.72 billion in taxes collected under the government’s fuel marking program for the first half of 2021
  • For the second quarter alone, 4.158 billion liters of kerosene, diesel, and gasoline were marked and P37.37 billion of taxes collected
  • Since the program was implemented in September 2019 and up to June 2021, marked were a total of 25.91 billion liters of fuel and collected were P252.22 billion in duties and taxes

A total of 8.35 billion liters of fuel were marked and P74.72 billion in taxes were collected under the government’s fuel marking program for the first half of 2021, according to the Bureau of Customs (BOC).

For the second quarter alone, 4.158 billion liters of kerosene, diesel, and gasoline were marked and P37.37 billion of taxes were collected, BOC said in a statement.

Since the program’s implementation in September 2019 and up to June 2021, BOC and Bureau of Internal Revenue (BIR) have marked a total of 25.91 billion liters of fuel and collected P252.22 billion in duties and taxes.

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

READ: BOC-BIR field testing of fuel starts Apr 26

Part of the program is field testing activities, which BOC and BIR started implementing last April. The random field and confirmatory testing covers gasoline, diesel and kerosene found in warehouses, storage tanks, gas stations and other retail outlets, and in such other properties or equipment, as well as in vessels, tank trucks, and similar fuel transporting vehicles.

Petroleum products found without the official fuel marker or not containing the required level of official fuel marker will be slapped duties and taxes, inclusive of fines and penalties. They may also be confiscated and forfeited and face the filing of the appropriate criminal case.

READ: DOE, BOC, BIR join forces in war against oil smugglers

Last May, the Department of Energy, BOC and BIR signed a memorandum of agreement to exchange information in a bid to further strengthen the government’s fight against fuel smuggling.

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