This is on top of addressing the concerns with respect to the reduction in oil import duty to 3.0 percent; from 5.0 percent; which goes along with the imposition of VAT charges effective last November 1.
In this vein, Energy Secretary Raphael P.M. Lotilla declared that they are closely coordinating with the Department of Finance (DoF) and other government agencies such as the Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) "to handle the transition of EVAT orderly."
He added that to avoid some confusion in the law’s process of implementation, "we have to work out ways to effect the EVAT as prudent as possible. It is important that we have our valuation of numbers. We are working closely with industry players and the dealers who are hit by EVAT."
On the proposed presumptive tax for petroleum dealers, the energy chief hinted that they are looking at a possibility of a retroactive implementation.
The formula being set forth, he said, would start with taking into account the level of inventories that the oil dealers have as of November 1.
In regard to the import duty cut, the energy department is coordinating closely with the BIR and BoC "to be able to carry out the reduction in import duties for those products sold" starting at the law’s implementation.
Typically, local refiners Petron Corporation and Pilipinas Shell Petroleum Corporation sustain inventory level of 45 days while oil importers have a leaner supply buildup of only 15 days.
"What we actually want is to get an accurate computation of the impact of VAT on petroleum products," Lotilla said.
At the same time, he noted that they would also need to provide solution to effect the 5.0 percent withholding tax on government purchases.
"The government may pay higher cost for its purchases. Should the government pay in cash basis.
We hope to find a convenient way to implement it," he said.
As the EVAT implementation goes full swing, the energy chief also assured consumers that they have intensified monitoring activities; with the DoE deploying its people to do round-the-clock inspections of gasoline stations nationwide.
"The DoE is stepping up monitoring activities to ensure that consumers are well protected from any undue adjustment in prices as we implement VAT on fuel. Several inspection teams are being dispatched round-the-clock to monitor," the energy chief stressed.
For this year, the energy department noted that it has already inspected a total of 1,435 gasoline stations nationwide; 621 in Luzon, 247 in Visayas and 567 in Mindanao. Around 2,400 LPG refilling plants, retail outlets and dealers nationwide have also been inspected.
Among the violations noted were underfilling, tampering and use of substandard cylinders, underdelivery of dispensing pumps and mainternance of illegal retail outlets.
Several cases have been filed at the DoE Legal Affairs Office against firms and establishments found with violations.
For this drive, Lotilla is also calling on local government units (LGUs) to assist in the inspections as LGUs are empowered by law to penalize firms found engaging in illegal and unsafe trade practices.
