DBM: fuel marking system on track for 2019

The Budget and Management Department (DBM) has indicated that it is ready to award the contract for the operation of the government's fuel marking system before the end of the month, with the government considering implementing it from 2019.

DBM Deputy Secretary, Rolando U. Toledo, stated that the DBM Supply Service (DBM-PS) was ready to award the contract for the implementation of the fuel marking system in the country in the month.

"I just talked to our director DBM-PS that we are ready to reward [the contract] for marking the fuel …, "said Toledo at the joint hearing of Ways and Means Committees and the Senate Economic Affairs Committee on Wednesday.

In July, DBM pointed out that two companies had expressed their intention to bid for the implementation of the fuel marking system, namely Authentix Inc., based in Texas, as well as a joint venture between Sicpa SA , based in Switzerland, and SGS Philippines Inc.

Later in the same month, it was reported that only the joint venture between Sicpa SA and SGS Philippines Inc. that will bid, Authentix Inc. regretting to no longer be able to participate in the call for bids related to the project .

"May be [the notice of award will be issued] in the month or, hopefully, in the week because we have a deadline to respect. Otherwise, we have to redo the procurement process, "he told reporters on the sidelines of the hearing.

He explained that if the contract was awarded this month, the implementation of the fuel marking system would still take place in 2019, the company having to prepare in a technical way to ensure the fluidity of the system. "[It will be in] 2019 because they first have technical preparations, "he said.

Senator Sherwin T. Gatchalian, for his part, pointed out that the fuel marking system should be put in place to discourage smuggling.

"Based on the revenue collection of TRAIN, we have collected 33 billion pesos, which will be channeled to programs such as free education, but many provisions of the law still need to be implemented . For example, the fuel mark that should be put in place to stop smuggling. If we do not do it, the smugglers will benefit, "said Gatchalian.

Target Collections

At the same time, the Under-Secretary of State for Finance, Karl Kendrick T. Chua, said at the same hearing that since the first half of the year, the government had collected 33.7 billions of dollars in revenue from the implementation of the TRAIN Act (Tax Reform for Acceleration and Inclusion). .

"Since we collected 33.7 billion pesos out of the 63.3 billion pesos, we are up to the point in the first half [of the year]"Said Chua.

The government's initial target for revenue collection from the train, amounting to 89.9 billion pesos for the first year of implementation, has been revised downward to 63.3 billion pesos, after the Development Budget Coordination Committee (DBCC) deducted 26.6 billion pesos from the forecast in light of delays in the implementation of the electronic billing system, as well as the marking system fuel.

"First half data [of the year showed] we collected 33.7 billion pesos out of 89.9 billion pesos. However, DBCC has deducted 26.6 billion pesos Pakistan because the electronic bill and fuel marking [are] not ready yet, "he added.

According to data from the Ministry of Finance, a total of 33.7 billion pounds of real revenue collected between January and June this year is above the target set at 30.1 billion pounds for the semester.

Revenue from excise taxes totaled more than 55.8 billion pesos, less than the target of 69.5 billion pesos. The total levies on excise taxes on oil amounted to 20.9 billion pesos, automobiles to 9.5 billion, sugar-sweetened drinks with 18.5 billion pesos, tobacco with 5.5 billion, taxes on coal with 400 million and mining taxes with 900 million, among others.