DOF Secretary Carlos Dominguez III
MANILA – Department of Finance (DOF) Secretary Carlos Dominguez III discounts the need to change the current tax system for oil products amid the reality that oil refiners pay more taxes than importers.
In a Viber message to journalists Tuesday, Dominguez said there are timing and market issues for oil refineries because they may acquire their supplies at a high price but may sell these at lower prices after refining if prices in the world market dropped.
He said importers, on the other hand, are less vulnerable to this risk since they can immediately sell their products because these have been processed.
“It’s actually a supply chain issue rather than a tax issue,” he added.
Dominguez said: “We don’t need to change our tax laws on this.”
“It’s happening worldwide, refinery margins are getting squeezed. Big oil companies have been shutting down their refineries in various parts of the world,” he said.
Earlier, Petron Corporation president and chief executive officer Ramon Ang said they may shut down their Bataan refinery, the biggest in the country if appeals for the government to provide a level playing field in the industry will not result positively. (PNA)
