MANILA Mayor Francisco ‘Isko Moreno’ Domagoso pledged to slash the tax on electricity and petroleum products by 50 percent should he win as president next year.

Domagoso made the pledge during a town hall meeting in Barangay Banaba in Tarlac City, where he met 100 farmers and agricultural workers to listen to their problems and suggestions on how to increase income and productivity.

He said lowering the excise tax on fuel and electricity by half will benefit not only the poor but also the middle class who have been at the receiving end of the weekly price increases in crude oil.

“To cushion the socio-economic impact of the pandemic, a 50 percent reduction in fuel excise tax can lower the power generation cost and another 50 percent cut on taxes on electricity would mean savings for the majority of our people, many of whom are jobless now due to the Covid 19 pandemic,” Domagoso said.

The mayor stressed that the successive oil price hikes greatly affect farmers and fishermen.

“The income of farmers and fishermen will definitely be affected by the fuel price hikes. Farmers use crude oil in their farm tractors, kuliglig, and motors that are used for irrigation. Even their fertilizers and pesticides are by-products of petroleum. Fishermen will also have to reduce their fishing trip because of high fuel prices,” he said.

He added that it is better that the government make the sacrifice “instead of letting the people suffer the brunt of the spiraling prices of fuel and petroleum products.”

“There is such a thing as delayed gratification principle which means that while the government bites the bullet by implementing a 50 percent tax cut on electricity and fuel, the end-result is still favorable to the government,” Domagoso pointed out.

“Bagama’t nalugi ang gobyerno sa buwis, lumakas naman ang buying power ng mamamayan at bumalik ito sa ekonomiya natin na lalong lumakas. That is a positive chain reaction,” he added.