The Bureau of Customs (BOC) has reported a dramatic decline in revenue from excise taxes on liquefied petroleum gas (LPG) and kerosene imports. Following the suspension of these taxes, collections plunged by 88% in one week.
From April 27 to May 3, the BOC collected only P50.2 million from duties and taxes, down from P409.3 million the previous week. Import volumes also fell, dropping 85% to 7,222 metric tons.
The tax relief, which came into effect on April 17, resulted in a price reduction for consumers—an LPG tank now costs P37 less, while kerosene prices have dropped by P5.65 per liter.
Commissioner Ariel Nepomuceno expressed support for the suspension, acknowledging its benefits for consumers. Despite the dip in LPG and kerosene revenue, the BOC exceeded its overall revenue target for April, collecting P86.4 billion, a 15% increase from the previous year.
Impact on Fuel Imports
The BOC noted that overall fuel imports, which include diesel, gasoline, and jet fuel, generated P33.7 billion in duties for April, up 45% year-on-year. Total fuel import volume also rose by 11%.
Interestingly, South Korea has now become the leading supplier of oil imports to the Philippines, surpassing Saudi Arabia and the UAE.
We fully support and understand the suspension of imposing the excise tax on imported kerosene and LPG,
Ariel Nepomuceno, BOC Commissioner