Senate aspirant Teddy Baguilat counseled caution against the proposal of Manila Mayor and Presidential candidate Isko Moreno to reduce taxes on fuel and electricity as a way of reducing fuel and electricity prices for consumers.
Moreno was quoted in reports as saying “50% tax cuts sa oil, 50% tax cuts sa kuryente, at sigurado ako para ko nang binigyan ng ayuda hanggang bundok ng Tralala.”
Baguilat remarked, however, that “the move is a short-term fix for a long-term problem.”
“Of course, cutting taxes will reduce fuel and electricity prices, but they will also deprive the government of much-needed funds, especially money to jump-start the economy after the pandemic,” Baguilat elaborated.
“We should also remember that electricity prices have several components, as anyone’s electricity bill will show, so simply saying that taxes on electricity should be cut is an over-simplified statement that sounds pleasant but is short on practicality,” he added.
Noting the factors affecting fuel prices, Baguilat said that “even without taxes, fuel and electricity will still be affected by international prices, especially costs associated with oil, which have rarely dropped. And international conflicts like the one in Ukraine also tend to lead to oil price spikes.”
“The more sustainable solution is to reduce the country’s dependence on fossil fuels and switch to renewable energy and technologies, including switching to electric vehicles, which is what VP Leni Robredo is pushing for. It may take time, but the gains will be far more extensive and permanent,” Baguilat said.
Baguilat is running for the Senate in the 2022 elections under the unified ticket of Vice President Leni Robredo and Sen. Kiko Pangilinan. He aims to bring to the Senate the platform of indigenous peoples and the indigenous mindset which nurtures and promotes rights, culture and the environment. #
