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LKI 2020-007 Press Statement February 14, 2020 Laban Konsyumer asks BIR to issue definitive ruling on VAT of Fuel Excise taxes; seeks ARTA intervention.

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LKI 2020-007

February 14, 2020


In a letter to Mr. Manuel Mapoy, Assistant Commissioner of Large Taxpayer Service, BIR Road, Quezon City, consumer group Laban Konsyumer Inc. (LKI) wrote about their Request for definitive ruling. The group called out the long wait without action on the matter of their clamor for no VAT to be imposed and collected on the excise taxes of fuel products. The request for definitive ruling had been pending for a year. The group requested for acknowledgement of receipt. Dimagiba also called for a refund of the VAT.

Dimagiba stressed that “we already endorsed the red tape and inaction to the ARTA complaints desk. We are hoping for swift action to be taken on the matter at hand.” To highlight the slow process and the negative effects of too much red tape, hindering the swift and prompt action needed on the matter, Laban Konsyumer Inc. and its President Atty. Victorio Mario A. Dimagiba detailed the chronology of events.

February 26, 2019 – Letter to the Commissioner

May 16, 2019 – The letter was received by Legal/Law and Legislative Division

July 17, 2019- The Letter was endorsed to the Assistant Commissioner of Legal Service

December 16, 2019 – The letter was returned to the Law and Legislative Division 

December 16, 2019 – The letter was referred to the Assistant Commissioner of Large Taxpayer Service

December 17, 2019- The letter was referred to Head Revenue Executive Assistant Excise Beverly Milo  

Dimagiba explained that “for the information, the collection of the 3rd tranche of the excise taxes on fuel is fully implemented by the oil companies.”

In the letter, and in the statement to the public, followed by the summary, total Excise Taxes and VAT per liter are as follows:

Fuel Excise Tax VAT

Gas 10.00 1.20

Diesel   6.00   .72

Kerosene   5.00   .60

LPG   3.00               .36

In the letter, Dimagiba stated “It is the position of Laban Konsyumer Inc. that there should be no separate VAT imposed and collected on the excise taxes on fuel products. The subject request for definitive ruling is pending for a year.  Thank you. We always look out for the best interest of the consumers, and we hold steadfast that they should not be forced to pay for the VAT.”

The group concluded that “for consumer welfare, and so as to prevent consumers from having to pay overly excessive costs and prices, we believe that they should be relieved of all excise taxes on fuel products. We do not believe that there is basis for a separate VAT to be imposed and collected on the excise taxes of the mentioned products. We appeal to the government to act on this as soon as possible, so that consumers will be protected from having to pay unfair and unjust expenses.”

For any inquiries or concerns, you may reach LKI President Atty . Vic Dimagiba at 0917-812-5546. Visit our updated website at, on facebook at Laban Konsyumer Inc and email us at