Philippines cuts oil import tariff amid rising prices
( dpa ) - Philippine President Gloria Macapagal Arroyo ordered Tuesday a reduction in the tariff on oil imports to mitigate the impact of soaring world oil prices on consumers.
Arroyo said the current 3-per cent tariff on oil imports will be cut by 1 per cent or 2 per cent, depending on the spike in prices in the world market.
"We will bring down the tariff on all petroleum products," she said in a press conference.
Finance Secretary Margarito Teves said the tariff cut was expected to eventually reduce fuel pump prices by between 23 centavos and 25 centavos (0.56 dollars and 0.60 dollars) for one litre.
Arroyo said the government does not plan to waive the 12-per cent sales tax on petroleum products in a bid to further soften the impact of higher oil prices.
She stressed that removing the 12-per cent sales tax would be counterproductive because this could reduce state revenues and hobble spending on vital infrastructure and social programmes.