Gov’t collects P801.55B from fuel marking

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Gov’t collects P801.55B from fuel marking
Image from the Bureau of Customs.
  • Government collected P801.55 billion from marking 70.48 billion liters of fuel from Sep 2019 to Nov 30, 2023
  • The Bureau of Customs contributed P771.74 billion, covering duties and taxes, while Bureau of Internal Revenue generated P29.81 billion from excise taxes
  • Initiated in September 2019, the program aims to combat oil smuggling and address revenue losses due to illegal importation or misdeclaration of petroleum products
  • Field testing activities by Customs and Bureau of Internal Revenue, starting in April 2021, cover gasoline, diesel, and kerosene in various locations, imposing penalties for non-compliance

The Philippine government collected P801.55 billion from marking 70.48 billion liters of fuel between September 2019 and November 30, 2023, latest data showed.

Of the total, the Bureau of Customs (BOC) took in P771.74 billion in duties and taxes and Bureau of Internal Revenue (BIR) P29.81 billion in excise taxes.

The fuel marking program is a key provision of Republic Act 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law. Enforced since September 2019, the marking of fuel products, whether imported or manufactured domestically, became mandatory five years after the TRAIN Law took effect in January 2018.

READ: With TRAIN passage, fuel marking in PH now mandatory

Fuel marking aims to curb oil smuggling and plug revenue losses arising from the illegal importation or misdeclaration of petroleum products.

As part of the program, the BOC and BIR commenced field testing activities in April 2021.

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 lacking the official fuel marker or failing to meet the required marker level will incur duties, taxes, fines, and penalties. Additionally, they may face confiscation, forfeiture, and criminal charges.