Miro Quimbo against tax cut to lower fuel prices

Marikina City 2nd District Rep. Miro Quimbo has objected to the removal of the value-added tax on fuel to lower prices of petroleum products, despite growing public clamor for relief.

“Ang epekto niyan, hindi lang ang kawalan ng government revenue but more significant na hindi nakikita ng marami nakakaapekto sa credit rating natin,” said Quimbo, who is also the chairperson of the House Committee on Ways and Means.

Quimbo said keeping the country’s high credit rating is crucial, as creditors use it to determine the interest rates they impose on the government’s loans.

“Kapag ang ating credit rating ay mababa ang number one na nakakaapekto is your ability to repay,” he explained, adding it could lead to banks imposing higher interest rates on housing loans, car loans, and other personal or business loans.

Congress recently approved the measure authorizing the President to suspend or reduce the excise tax on fuel products amid the ongoing oil crisis.