Remove excise tax, VAT on oil products and essentials

 

By Raymundo W. Lo, MD, FPSP

Published Mar 31, 2026 12:05 am | Updated Mar 30, 2026 06:21 pm

UNDER THE MICROSCOPE

With the bill granting the president emergency powers regarding the energy crisis already passed, the president should not just reduce the excise tax on fuels. Rather, he should totally remove it, even temporarily, to give the people some breathing space amid the tightening fuel supply and soaring fuel prices.

He should also suspend the value-added tax, not only on fuels but on all necessities. Although VAT is levied on all purchases, its effects are far greater on those who are on the fringes (laylayan) who can barely keep body and soul together. It is a regressive tax, taking a larger percentage of income from low-income households compared to higher income households. The poverty incidence in the Philippines (those unable to buy both basic food and non-food needs) was 22.4 percent, or three million families. On the individual level, it was 15.5 percent, or 17.54 million individuals in 2023. These rates are higher in Mindanao and the Cordilleras. Those three million families reported experiencing involuntary hunger. They may not have anything to eat at all soon.

The middle-income earners are not exempt from the effects of VAT. The more you consume, the higher the amount of VAT you pay. With the oil crisis, we can expect more middle-income earners at the lower level to join the impoverished. Although the middle class are 39.8 percent of the population, those earning ₱24,000 and even a little higher will be in danger of joining the poor. They are also be vulnerable to economic shocks, such as a serious illness in the family, or losing their jobs.

Subsidies are generally limited in amounts. The transport sector will be given subsidies, but these are more often one-time dole-outs and have no lasting effects. They are also very limited in scope. More often than not, politicians make a big show out of handing out subsidies, in aid of re-election.

At the country level, a one percentage point increase in the VAT rate is associated with a 2.802 percent decline in average nominal wages. The same increase will produce a 1.444 percent decline in employment. So, while the government enjoys a windfall with VAT collection, the people, especially the great majority of Filipinos, will suffer more.

We are not in the critical phase of this war-induced economic downturn yet but it will definitely get a lot worse before it gets better. Already, we are feeling the inflationary effects of the oil price increases in terms of higher prices on practically everything that needs to be imported or transported to the point of sale.

The mass transport sector was the first to be affected, with jeepney drivers and operators staging strikes. They were the first to clamor for removing excise taxes and VAT. But the inflationary price spiral will surely hit the average consumer hard. Daily wages which are hardly enough to keep body and soul together, will be even more inadequate in the face of price increases on all necessities-food, clothing and shelter.

As the inflationary effects of the Mid-East crisis accelerate, many more will sink into poverty. The divide between the haves and the have-nots will widen. People will be driven to commit crime to make ends meet in desperation. Parents cannot stand seeing their children starve. There will be social unrest which fringe elements will make the most of and agitate for regime change. This nation, already divided, will face even more fragmentation. The administration, already besieged by multiple crises, should act to ameliorate the effects of this crisis, or it will face challenges to its authority and possibly, destabilization efforts by its enemies, including its former partners. This does not augur well for the Marcos Jr. administration.

The government is set to have a revenue shortfall of ₱121.4 billion with a suspension of the excise tax. Definitely, suspending the VAT on fuel and necessities will cost the government more. The total revenue losses will be around ₱330 billion. It will result in a fiscal deficit, increase national debt, reduce spending on essential social services and development projects, and further reduce government income due to reduced indirect taxation. But we should weigh the costs of lost government revenue with the cushioning of the crisis-induced inflation that will hit every Filipino hard, more so the daily income earner. It’s time to reduce spending on other services. Development projects can wait. Everyone should tighten their belts.

Besides, the revenue shortfall will primarily affect the provision of unprogrammed funds, which are the primary target of corrupt government officials. For the year’s budget, unprogrammed funds have been trimmed to ₱150.9 billion. Without any unprogrammed funds to tinker with, politicians will have less opportunities for dipping their dirty fingers into government coffers. That may well be the silver lining in this scenario.

 

Over 2,200 personnel deployed nationwide as Philippine Red Cross goes on high alert

Philippine Red Cross personnel assist travelers at a first aid station during Holy Week operations as millions of Filipinos journey nationwide. (PRC photo)

With millions of Filipinos expected to head to provinces, pilgrimage sites, and vacation destinations, the Philippine Red Cross (PRC) will remain on high alert from March 29 to April 5. Read more

Church urges faithful to practice simplicity this Holy Week

 

By Ivy Tejano

Published Mar 30, 2026 10:11 pm

DAVAO CITY – The Archdiocese of Davao called on the faithful on Monday, March 30, to practice responsible travel and simplicity this Holy Week amid global hardships, including the ongoing war in the Middle East.

Archbishop of Davao Romulo G. Valles reminded Catholics to do what they can to help themselves and support the most vulnerable, even in small ways, during Holy Week and beyond.

Valles encouraged limiting vehicle use, particularly those powered by fossil fuels, and suggested planning travel only for essential purposes. He also recommended carpooling when attending liturgical celebrations.

He addressed the tradition of Visita Iglesia or visiting churches on Maundy Thursday and sometimes Good Friday, noting that while this is a beautiful custom, it is not obligatory.

He said the faithful may visit only one or two churches if needed, emphasizing that the spirit of sacrifice and mindfulness matters more than the number of churches visited.

“We do what we can do. We sacrifice. In all this, we trust that the Lord will bless our efforts, no matter how small, and make ‘miracles’ of them, to give us strength and hope in these difficult times,” Valles said.

Valles underscored the Church’s call for reflection, simplicity, and care for the community and the environment during the solemn season of Lent.

Should I share my money?

 

Posted by 

Ronna Lou

 

My husband and I earn almost the same, he is asking me to share the finances, isn't it the husband's duty to provide? Should I share my money?

No, not if we’re talking about a two wage earner household. I’m 55 (almost 56) and I’ve been married twice.

In my first marriage, my wife did whatever she wanted. She spent money freely and racked up huge amounts of credit card debt. I felt betrayed by her not willing to compromise or live well within our means. It was a one-sided relationship. Because I felt like an unequal partner, I treated her differently. I loved her but there was no spark, romance, or interest really. That led to her also being dissatisfied. She eventually met another man that swept her off her feet. The end result, she divorced me, moved to his home state of New Jersey, and left our two teenagers for me to continue raising (not that I would’ve been okay with them moving away from family and friends in their birth city regardless).

I eventually remarried. My wife and combined everything and we have monthly budget meetings. We have a joint checking account where are salaries are direct deposited, savings, CDs, and even joint brokerage accounts. We share the financial burden of operating our household as well as the joy of preparing for eventual retirement and everything in between.

It hasn’t been easy. In fact, the first 10 years of our marriage had quite a few challenges: blended family and in-laws being the biggest but of course money has been up there (how to spend it, where, and how much is okay or not). I’ll say in the last 1–2 years, our relationship has dramatically improved. We decided to be 100% open, transparent, and willing to accommodate our partner’s requests- listen and do our best to come to a compromise. Even if the other person doesn’t really “feel it”. We’ve both had to temper ourselves, our responses, and learn to be better spouses.

So. To answer your second question - should you share your money? If you look at it as yours and not “ours”, then I’d say that’s the first mental challenge you need to overcome. Some things are meant to be shared equally. I think that includes money and certainly time (chores, household responsibilities, etc).

.Strategic price freeze imperative amid crisis

By Manila Bulletin

Published Mar 30, 2026 12:05 am | Updated Mar 29, 2026 03:48 pm

The renewed volatility in global oil markets, triggered by escalating tensions in the Middle East, is once again testing the resilience of the Philippine economy. As fuel prices surge, the ripple effects are swiftly felt across sectors. Transportation fares rise, production costs escalate, and inevitably, the prices of basic commodities follow suit. For millions of Filipino households, especially those at the lower end of the income spectrum, this is not merely an inconvenience; it is a matter of daily survival.

Calls for a price freeze on essential goods and basic commodities have thus gained urgency and moral weight. At the heart of this appeal lies a simple but compelling truth. When external shocks threaten to destabilize the economic order, government must act decisively to protect the most vulnerable while preserving overall stability.

Fuel price increases have a uniquely pervasive impact. Unlike other commodities, oil affects nearly every stage of the supply chain: from farm inputs and food transport to manufacturing and retail distribution. As logistics costs climb, food prices become particularly susceptible to continuous upward adjustments. Left unchecked, this can trigger a cycle of inflation that erodes purchasing power, dampens consumer confidence, and constrains economic activity.

The poorest sectors bear the heaviest burden. With already limited incomes, even marginal price increases can force painful trade-offs—less food on the table, deferred healthcare, or children pulled out of school. Inflation, in this context, is not an abstract economic indicator. It is a painful reality that deepens inequality and undermines social cohesion.

The declaration of a national energy emergency under Executive Order No. 110 was a necessary step in addressing supply-side risks and mobilizing government resources. However, its scope notably stops short of directly addressing the cascading effects on food and other essential goods. This gap underscores the need for complementary policy measures that can cushion the immediate impact on consumers.

A carefully calibrated price freeze, limited in duration and scope, can serve as a stabilizing mechanism during periods of extraordinary volatility. It signals government’s resolve to prevent opportunistic pricing and speculative behavior, while giving both producers and consumers a predictable environment in which to operate. Such an intervention, however, must be accompanied by robust enforcement and clear guidelines to avoid unintended consequences such as hoarding, supply shortages, or black-market activities.

Equally important is the need for targeted support to producers and small businesses who may be adversely affected by a price cap. Subsidies, tax relief, or temporary financial assistance can help ensure that supply chains remain intact and that the burden of adjustment is shared equitably across the economy.

Beyond immediate relief, this moment calls for a broader reflection on economic resilience. Strengthening local food production, investing in energy diversification, and enhancing supply chain efficiency are critical to reducing vulnerability to external shocks. Social safety nets must also be reinforced to provide timely assistance to those most in need.

The objective is not to distort markets indefinitely, but to prevent short-term disruptions from evolving into long-term crises. Economic continuity depends as much on maintaining consumer confidence as it does on safeguarding production and distribution systems. A measured price freeze, implemented with transparency and supported by complementary policies, can help achieve this balance.

In times of uncertainty, the role of government as steward of the public good becomes paramount. Ensuring that no Filipino is left behind amid rising prices is not only an economic necessity; it is a moral imperative.

The candidate Miss Universe Philippines erased - and why she refuses to disappear

By Robert Requintina

Published Mar 29, 2026 01:00 pm

The Miss Universe Philippines (MUP) Organization confirmed the removal of an official candidate from this year's competition lineup.

While the organization has yet to disclose the candidate's identity, pageant fans suspect that Miss Universe Philippines Kalibo, Aklan, Imelda Schweighart, was cut from this year's roster.

Filipino-German beauty queen Imelda Schweighart

"Following concerns that were brought to our attention, the organization undertook a careful and thorough review of the matter," the MUP statement read.  

It added, "The delegate was given both verbal and written guidance to help address the situation.

"Despite these efforts, certain behaviors continued in ways that were not aligned with the standards we aim to uphold.

"As such, it has been decided that the delegate will no longer be allowed to continue in the competition," the statement also said.

On social media, Imelda said that her pageant journey continues. Her full post:  

"Ten years ago something massive shifted in my life. It was a collision of light and shadow, the good and the bad, but it whispered a truth I’ve carried every single day since: my journey was never meant to be a quiet moment, it was meant to be a legacy.

"I knew even then, in the heat of the fire a decade ago, that I would return. I didn’t know the how and I didn’t know the when, but I felt the pull of destiny. I’ve spent these years living, learning, and waiting for the perfect moment to step back into the light. Now, standing here feels like living in a movie, a vivid dream with the world as my witness.

"My vision was always different. I didn’t want the standard slender silhouette; I wanted the power and the presence of the Latinas I’ve always admired. It took three years of quiet dedication and six months of the most grueling, intensive conditioning to build this version of myself. I am proud of every muscle, every line, and every ounce of strength I’ve earned. I didn’t just wait for a comeback I built the body to sustain it.

"Whether you cheer or you bash, you are part of this story. The noise didn’t break me; it made me immortal in this game. It made me memorable. I am profoundly grateful because I know I am not walking this path alone. I have sustained this fire for ten years because God is the architect behind it all.

"Temporary noise is just a 24-hour cycle, but resiliency is a lifetime. I didn’t come this far just to be a headline. I am here to be remembered.

"The journey continues."     

At 30, Imelda is no stranger to the pageant world. A Bb. Pilipinas alumna, she claimed the Miss Philippines Earth crown in 2016 and went on to represent the country at Miss Earth 2016 — a stage she knows all too well.

The Filipina-German beauty queen is also a single mother raising an eight-year-old son — a fact that makes her decade-long fight to reclaim the spotlight all the more compelling.

2.48 MILLION BARRELS OF RUSSIAN CRUDE PROCURED

 NEWS UPDATE: 2.48 MILLION BARRELS OF RUSSIAN CRUDE PROCURED

Petron Corp., the country’s only oil refiner, said it has procured a total of 2.48 million barrels of crude oil sourced from Russia as the country faces an energy emergency.

These orders, along with all other crude secured, will beef up the company’s fuel inventory until June, Petron said.

It also noted that the procurement of Russian crude is not part of its business-as-usual sourcing strategy, as the orders were undertaken “strictly out of extreme necessity.”

“A refinery shutdown for failure to secure crude would lead to serious nationwide fuel shortages, sharp price spikes, panic buying, disruption to transportation and logistics, and broader economic dislocation,” the company said in a statement today.

| via Brix Lelis / Philippine Star

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‘Outlier’ PH logs Asia’s sharpest confidence drop

 

BY IAN NICOLAS P. CIGARAL

MARCH 30, 2026

Metro Manila skyline —AFP FILE PHOTO

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PH firms turned more upbeat in February

HONG KONG—Filipino consumers recorded the sharpest drop in confidence in Asia in 2025, as persistent inflation worries, stagnant wages and the fallout from a recent graft scandal weighed on sentiment, a new survey found.

And with the ongoing war in the Middle East stoking local pump prices, effective government intervention is needed to shore up household confidence.

The Philippines stood out as an outlier in the Asia Consumer Study 2026 by Germany-based consultancy Roland Berger. The survey found that 35 percent of Filipino respondents expressed a positive outlook on the future, down from 53 percent in 2024—the steepest decline among 11 Asian markets surveyed.

Roland Berger polled more than 3,500 respondents across the region to track the forces shaping consumer behavior in 2025 and this year.

Hugo Texier, the study’s author and a partner at the firm, said the gloomier outlook largely reflected domestic developments. “Typically, this is driven by a political or economic event,” he said in an interview. “I think there is fear of inflation. I think there is wage stagnation.”

“It doesn’t mean they will not spend, but it means they are more cautious,” he added.

The findings echo the Bangko Sentral ng Pilipinas’ own consumer survey, which showed confidence deteriorating to a pandemic-era low of -22.2 percent in the fourth quarter of 2025.

A negative reading indicates pessimists outnumber optimists. Among the factors that dragged down household sentiment, the central bank said, was a sweeping corruption scandal that has implicated high-ranking government officials.

Roland Berger said the erosion in confidence was making Filipinos more price-conscious. About 22 percent of respondents said they were highly sensitive to prices when making purchases, relying on promotions, bundles and installment schemes to maximize value.

Even so, a larger share—49 percent—still placed the highest priority on product quality in their buying decisions.

Notably, that emphasis on quality is boosting interest in luxury goods. The proportion of Filipino respondents intending to shift toward premium purchases rose to 22 percent in 2025 from a year earlier, with the strongest demand for high-end clothing and footwear (61 percent), jewelry (59 percent) and cosmetics and fragrances (55 percent).

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Looking ahead, Texier said the ongoing war in the Middle East could trigger a “fundamental” shift in consumption patterns in the Philippines, with households likely to turn more price sensitive.

This, Texier said, should prompt businesses to rethink their strategy.

“Use promotions, bundles, installment options and loyalty programs to appeal to price-conscious consumers,” he said.