The proposal seeks to raise the fuel tax which is currently around US$0.60 for gasoline and US$0.17 for diesel.
Moreover, the measure would also provide an increase in the rate for petroleum products such as kerosene, naphtha and liquefied petroleum gas.
Omar Franco, Superintendent of Tax Administration, told Prensalibre.com that “… The move is in response to the low price of a barrel of oil internationally, which has impacted heavily on tax revenues from VAT in respect to final consumption and the change in the exchange rate. ”
“… The taxable portion which applies to tax per gallon of gas is being analyzed, because the price is between $2.61, whereas in the last quarter of 2013 it was $4.71. That means the SAT collected VAT of $0.50 per gallon of gasoline when the pump price was $4.71. Now, with a cost of a gallon of super at $2.76, it collects $0.24. ”