Tighten your belts and get ready for higher prices of LPG, gas, and diesel starting January 1, 2019!
Did you know that there are additional excise taxes that will be imposed on oil, gas, and LPG beginning January 2019 (and a new round of taxes again beginning January 2020) under the TRAIN tax law that was approved in 2018?
We’re likely very familiar with the TRAIN law’s excise tax imposed in 2018 on petroleum products — which partly contributed to the higher inflation that year — but brace yourselves for two more rounds of taxes on diesel, gasoline, and other oil products which will kick in starting January 1, 2019 and January 1, 2020.
Yes, the approved TRAIN tax law of 2018 lowered income tax rates for all taxpayers but it also increased tax rates on several products including sugary beverages, automobiles, and oil and petroleum products, among others.
The approved TRAIN’s excise tax on oil and fuel spans three years, from 2018 until 2020, and will increase every year as follows.
New Tax on LPG, Diesel, and Gas under TRAIN – 2018, 2019, 2020
| Fixed Pricing Period | Property Equity Loan Interest Rate |
|---|---|
| Yearly | 6.25% |
| 2 years | 7.00% |
| 3 years | 7.25% |
| 4 years | 7.88% |
| 5 years | 7.88% |
| 6-10 years | 9.50% |
| 11-15 years | 10.50% |
| 16-20 years | 12.50% |
* Other useful TRAIN resources:
- New TRAIN Income Tax Tables
- Sample TRAIN Tax Computations and BIR Issuances
- Complete List of Tax on Petroleum Products (BIR Revenue Regulation RR 2-2018)
Although the implementation of new excise taxes will begin on January 1, the Department of Energy (DOE) has said that old stocks or inventories kept by companies should not automatically be charged the higher rates. Thus, Filipinos should start feeling the effect of higher oil prices only around the middle of January, the DOE claims.
Good thing I’ve read this article, I became aware of this new TRAIN tax. Thank you.