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An attendant updates the fuel prices at a gasoline station in Cubao, Quezon City on March 17, 2026, following a staggered hike in prices of oil companies nationwide due to the Middle East conflict.
The STAR / Miguel de Guzman
MANILA, Philippines — Former National Economic Development Authority Secretary Winnie Monsod has expressed opposition to the proposed suspension of fuel excise taxes, describing the move as "unfortunate" and "very wrong" for the country's economic stability.
In an ANC interview on Tuesday, March 17, Monsod said that the government should prioritize targeted assistance over broad tax cuts that primarily benefit wealthier segments of the population.
"A wealth tax…tax on what you own, not a tax on what you earn, and this wealth tax is going to be targeted ideally for the 50 wealthiest billionaires, family billionaires," Monsod said.
Monsod proposed a wealth tax specifically designed to generate revenue for crisis subsidies, suggesting a 3% tax on the assets of the Philippines' 50 wealthiest families, those with assets exceeding P3 billion.
According to Monsod's estimates, this measure could generate roughly P137 billion.
Monsod also questioned where the government will recover the funds set to be lost if the excise tax on oil is to be suspended.
She warned that the loss of revenue will force the suspension of other vital programs, which may end up hurting the poor the most.
"The move to suspend the excise tax on fuel is a very wrong move," Monsod said.
"Where's the government going to get that? What programs is the government going to suspend? You know, they've lost revenue and there is a budget," she added.
On March 9, Finance Undersecretary Karlo Fermin Adriano said in a House committee hearing that the removal of excise tax on fuels may result from the conflict in the Middle East and may lead to a loss of revenue amounting to P136 billion.
These proposals of suspending excise tax stemmed from the rise of oil prices, caused by the blocking of the Strait of Hormuz by the Iranian Navy, through which 20% of the global oil supply passes.
Due to the scarcity of supply, oil firms have prompted an increase in their oil prices, with some gasoline stations charging P100 per liter or more for certain oil variants.
On March 16, the House of Representatives approved the bill allowing President Ferdinand Marcos Jr. to suspend the collection of excise tax on fuel during a crisis.
Objective of the wealth tax. According to Monsod, the primary objective of this wealth tax would be to provide targeted "ayuda" or financial assistance to the bottom 50% of the Filipino population.
She explained that such a tax should be utilized specifically as a "crisis tax" to ensure that aid reaches those who need it most during difficult times rather than providing broad, untargeted tax breaks that benefit the wealthy.
Under her proposal, any remaining funds would be preserved in a dedicated crisis fund to be utilized for future emergencies, with the tax being reapplied only if those resources are depleted.
"That's more than any ayuda…Be for as long as the crisis starts, and whatever is left will be kept in that crisis fund, and then for the next crisis which will come sooner or later you know, we'll use that fund and if it runs out, we will tax them again," Monsod said.
