Fuel marking generates P452 billion as of late April

PHILSTAR

TAXES collected from marked fuel products amounted to P452.03 billion as of April 28, counting back to 2019 when the program started, according to the Department of Finance.

This total includes P422.22 billion from customs duties as of April 28 and P29.81 billion from excise taxes collected as of Oct. 28, 2021.

The volume of marked fuel was 40.81 billion liters as of April 29, according to data provided by Finance Secretary Carlos G. Dominguez III via Viber on Monday.

The fuel marking program was launched on Sept. 4, 2019. Fuel marked with a special dye is deemed tax compliant, while the absence of the dye is considered an indication that the fuel may be smuggled.

Luzon accounted for over 73% of all marked fuel, or over 30 billion liters, while 8.5 and 2.2 billion liters were marked in Mindanao and the Visayas, respectively.

Marked diesel accounted for 60.70% of all marked fuel, while gasoline took up 38.79%, and kerosene the remainder at 0.51%.

There are currently 28 oil firms participating in the fuel marking program.

Fuel marking is authorized under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion law, as a smuggling deterrent.

The Bureau of Customs marked a total of 11.68 billion liters of fuel this year as of the end of April. Last year, it marked 17 billion liters.

Customs collected P60.15 billion in duties and taxes from its fuel marking program in the first quarter of the year.

Mr. Dominguez said that the government expects to collect P147.1 billion in fuel excise tax and VAT in 2022. — Tobias Jared Tomas

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