Quimbo rejects proposal to remove fuel VAT, cites risks to PH credit standing

Marikina City 2nd District Representative Miro Quimbo has pushed back against proposals to remove the value-added tax (VAT) on petroleum products, even as public calls grow for measures that could lower fuel prices.

Serving as chairperson of the House Committee on Ways and Means, Quimbo said that scrapping the VAT on fuel may have wider implications beyond the immediate loss of government revenue.

“Ang epekto niyan, hindi lang ang kawalan ng government revenue but more significant na hindi nakikita ng marami nakakaapekto sa credit rating natin,” said Quimbo.

Quimbo said keeping the country’s high credit rating is crucial, as creditors use it to determine the interest rates they impose on the government’s loans.

“Kapag ang ating credit rating ay mababa ang number one na nakakaapekto is your ability to repay,” he explained, adding it could lead to banks imposing higher interest rates on housing loans, car loans, and other personal or business loans.

Congress recently approved the measure authorizing the President to suspend or reduce the excise tax on fuel products amid the ongoing oil crisis.