Malacañang on Monday clarified that President Ferdinand R. Marcos Jr. does not have the authority to suspend or reduce the value-added tax (VAT) on fuel, amidst ongoing calls from transport groups for relief from rising oil prices.

The clarification comes as a transport strike is set from April 15 to 17, with groups pushing for government intervention to ease the impact of higher fuel costs.

Palace Press Officer Claire Castro said there may be a misconception that the President can immediately suspend VAT through executive action. 

Such authority to repeal, adjust, or suspend taxes can only be granted through Congress.

“Wala pong kapangyarihan ang Pangulo na mag-suspend ng VAT dahil walang batas sa ngayon na siya ay binibigyan ng kapangyarihan. So baka nagkakaroon ng misconception,” Castro explained in a Palace briefing.

She added that the government has already rolled out measures to cushion the impact of rising oil prices, particularly for the transport sector.

“Nakikita natin mismo kung ano na ang ginagawa at nagawa ng Pangulo at ng administrasyon para sa transport sector. Sila nga iyong inuna,” she said, citing fuel subsidies and cash assistance programs.

Malacañang also urged transport groups to pursue dialogue instead of proceeding with the planned strike, saying the move would not be timely given current global conditions.

“Sa ating palagay, ang pagho-hold ng transport strike ay hindi napapanahon sa ngayon. Hindi ito makakatulong… Ang kinakailangan lamang talaga dito ay negosasyon, pag-uusap, pagtutulungan,” Castro said, pointing to ongoing tensions in the Middle East that continue to drive oil price volatility.

She said concerns from the transport sector will be discussed in the upcoming meeting of the UPLIFT Committee, a government body tasked with ensuring the stability of essential goods and services during the energy emergency.

Established under Executive Order No. 110 in March 2026, the committee coordinates efforts across agencies to stabilize fuel supply, food availability, and livelihood support for vulnerable sectors.

As fuel prices continue to rise, how can policymakers address public expectations for tax relief within existing legal limits?

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