The Manila Times
A MEASURE has been filed in the House of Representatives to protect Filipinos from the oil crisis. House Bill 8834, or the proposed Kalinga Act, was filed by Speaker Faustino Dy III and Majority Leader Ferdinand Alexander Marcos. HB 8834 provides “a clear system — there is a trigger, there is action, there is aid,” Marcos said in a statement. The bill lists triggers that activate or expand the Kalinga program. These are when the global oil price, “including the average Dubai crude oil price based on the Mean of Platts Singapore,” exceeds market thresholds; when there have been sustained increases in local fuel prices of at least 30 percent within 30 days; when extraordinary inflation is determined by the Bangko Sentral ng Pilipinas (BSP); when national fuel inventory levels fall below 30 days of supply, as determined by the Department of Energy (DOE); when there are imminent supply disruptions or energy shortages, as determined by the DOE; a presidential declaration of a state of national energy emergency; and other extraordinary external shocks that significantly increase domestic fuel prices or supply. The program shall include components to ensure stable fuel prices; energy supply, security, and inventory management; targeted assistance; essential goods and logistics stabilization; micro, small and medium enterprises (MSME) energy relief and business continuity; energy conservation; and flexible fiscal and regulatory measures. The targeted aid includes direct cash aid for minimum wage earners and low-income households; fuel subsidies for public transport drivers, farmers, fisherfolk, and logistics providers; transport aid for low-income workers; and public transport fare subsidies. To prevent business closures and job losses, the government will provide support to MSMEs through targeted energy and fuel subsidies where needed; low-interest loans and credit guarantee programs; tax payment deferment and regulatory fee relief; logistics and distribution support for MSMEs; and a moratorium of up to six months on the payment of interest and/or suspension of loan collections for qualified MSMEs under government financial institutions and government-directed lending programs. To provide flexibility in responding to fuel price shocks, HB 8834 authorizes the government to suspend or reduce fuel excise taxes and import duties, or cut regulatory fees and charges. The bill creates a Kalinga Inter-Agency Task Force that will oversee the implementation of the program’s components. The task force’s chairmen will be the executive secretary and the heads of the Department of Energy and of Finance. Its members would come from relevant agencies, including the Department of Economy, Planning, and Development; Department of Budget and Management; BSP; Department of Trade and Industry; Department of Agriculture; Department of Transportation; Department of Social Welfare and Development; and Philippine Statistics Authority.
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