Agri dept supports ‘in principle’ suspension of VAT, excise taxes on fuel—solon
MANILA—The Department of Agriculture supports, in principle, the temporary suspension of value-added tax (VAT) and excise tax on fuel when prices are “exceptionally high.”
The agency’s budget sponsor said this after Gabriela party-list Representative Sarah Elago mentioned the recent increase in fuel prices and alleged that fuel subsidies to farmers and fisherfolk are insufficient.
“Hindi po talaga sapat ‘yung mga fuel subsidy dahil nasa P2,000 plus lang po ito. Malayo doon sa kinakailangan na nasa P15,000 to P30,000 na kailangan ng isang bangka para matiyak na siya ay makapamalaot at magkaroon ng huli para sa isang araw,” Elago said.
The lawmaker said that instead of using the subsidy to buy fuel, some fishers use the money to buy food.
When asked about the DA’s recommendation regarding excise taxes on petroleum products, the DA’s budget sponsor, Pampanga 4th District Representative Anna Bondoc said the DA supports in principle the temporary suspension of VAT and excise taxes on fuel “to reduce cost pressures across the agricultural and fisheries value chain.”
“We are including the fuel assistance po sa ating QRF [quick response fund], and we are seeking po more funds for fuel assistance,” Bondoc added.
According to the Department of Energy, as of September 21, domestic fuel prices have increased by the following amounts since the start of the year:
• P65.02/liter for gasoline,
• P64.86/liter for diesel, and
• P58.07/liter for kerosene
This does not yet take into account the latest price hikes that take effect today.
Meanwhile, Bondoc also admitted that 40 percent of farmers are not captured by the Registry System for Basic Sectors in Agriculture (RSBSA), which is used for distribution of assistance.
During plenary deliberations on the DA’s 2027 budget, APEC party-list Representative Sergio Dagooc lamented reports of farmers saying they do not receive aid from the DA.
“Marami po tayong mga farmers na nagrereklamo na hindi nakarating sa kanila ‘yung mga tulong galing sa ating pamahalaan through the Department of Agriculture,” Dagooc said.
The DA needs 23,000 extension workers to help find farmers and have them registered, according to the lawmaker.
“Hindi po lahat ng mga farmers ay naca-capture po ng RSBSA because we are relying a lot on the LGU and the MAO or the municipal agricultural workers. But again, limited din po sila. So we do not have direct access to the barangay level– from the municipal to the barangay level because it was devolved,” Bondoc said.
“We cannot wait for the farmers to go to the munisipyo or to the DA. Tayo mismo, we have to go down and find the farmers and register them. So it would help a lot if there were extension workers. And the DA is strongly pushing for extension workers down to the barangay level, down to the purok level, who will go around. Hindi po kaya talaga ng MAO ito,” Bondoc added.
The RSBSA is used as a basis for gas and diesel allowances, according to Bondoc.
The DA will roll out self-registration for the RSBSA by the last quarter of the year, according to Bondoc.
An RSBSA LGU app will also be established for local government units to cross-check the system’s data with their own.
“For the last quarter po of 2026, there will now be a self-registration online. And they will have the RSBSA LGU app also para po ‘yung mga LGUs, ‘yung mga mayors at ‘yung mga municipal agriculturists would be able to check po if their list that they have is also coinciding with the RSBSA,” Bondoc said.