MALACAÑANG on Wednesday said President Ferdinand Marcos Jr. will certify as urgent a proposed measure seeking a new authority to reduce excise tax on fuel products, describing it as “timely” as war spreads in the Middle East. Palace Press Officer Claire Castro said Marcos cannot suspend the imposition of mandatory excise taxes on all oil and fuel products unless Congress passes a new law. “We were told that the lifting or suspension of the excise tax applied only from 2018 to 2020,” Castro said during a press conference. “So, at present, it is no longer in effect, which is why the president wants a new law that would give him the authority to reduce the excise tax,” she added. Under Republic Act (RA) 10963, or the Tax Reform for Acceleration and Inclusion Law, excise taxes on petroleum products were implemented in three tranches from Jan. 1, 2018 to Jan. 1, 2020. RA 10964 also provides for the automatic suspension of the excise tax increase if the average Dubai crude oil price reaches or exceeds $80 per barrel for three months. On Tuesday, Marcos said he would talk to leaders of Congress about granting him the power to reduce excise taxes on fuel products once the price of Dubai crude hits $80 a barrel. No details are provided on the amount of the reduction in excise taxes or how long it would be in effect. “I will discuss it with the leadership of Congress to see if it is going to be an emergency measure,” the president said during a press conference in Malacañang. “It is not going to be a permanent measure. It will be something that we will dispose of as soon as the crisis is over,” he added. Meanwhile, Castro said the economic managers would determine the possible rates of the proposed oil excise tax cut should Marcos exercise his emergency powers. “Nothing was discussed yesterday. And he will listen to the economic team on what the best reduction rate would be,” Castro said. The Palace official also echoed Marcos’ assurance that the excise tax cut proposal would only be temporary. The proposal for emergency powers was among the Marcos administration’s moves to cushion the potential impact of the ongoing Middle East war on the country’s energy sector and economy. The president also directed the Department of Energy to coordinate with oil companies to ensure that the price increases they would implement were implemented in a staggered manner. The government also plans to provide “targeted” fuel subsidies for the transport — including drivers of public utility vehicles — and agriculture sectors, including farmers and fisherfolk,” Marcos said. “Hopefully, before the four to five weeks, the level of intensity of the fighting will come down. In other words, that commerce will proceed in a more or less normal way, number one, and secondly, that oil production will start to normalize,” he added.