A party-list lawmaker on Monday backed the clamor for a government price control on basic goods and services to mitigate the impact of the new tax system on poor sectors.
“Ordinary consumers are now paying the high price of Duterte’s Train [Tax Reform for Acceleration and Inclusion] Law that caused the skyrocketing of prices of basic goods and services, due to increased taxes on oil products, used in power production, sugar-based raw materials for products and among others,” Anakpawis Party-list Rep. Ariel Casilao said.
Casilao, a member of the Makabayan Bloc, made the statement in support to the call of the consumer network Samahan at Ugnayan ng mga Konsyumer para sa Ikauunlad ng Bayan.
“Amid the absence of living wages for workers, this situation is catastrophic worst as the already low household incomes are slashed more, degrading the standard of living of the poor, for this situation, subsidy is clearly inadequate, regulation on prices is urgent,” Casilao said.
Suki cited significant increases in the prices of goods and common grocery items, such as of leafy vegetable bundles had increased from P5 to P10; of fruits increasing five-fold; chicken and pork prices have jacked up by P30.00 per kilo.
In addition, sugar-based products like beverages which include powdered juices in sachets as well as chocolate powdered drinks now cost P14 to 16 and P70 to 90.00 from formerly P8 to 9.00 and P50, respectively. While instant coffee mixes and 150-gram powdered milk bags now costing more by P2 to 3 and P9. Canned goods like sardines increased by at least P1.12.
Worse, due to the Train law, Casilao said consumers are bearing the brunt of power rate increase.
He said that the Manila Electric Company (Meralco) already imposed a P1.83 per kilowatt-hour-increase on February and April billings.
Moreover, the poorest sectors such as small farmers, farm workers and fisherfolks also have been on the receiving end on the impact of the new tax law implementation, he said.
Suki said that an increase on cost production from over a hundred to a thousand pesos were monitored from fuel cost making it more harder to support their family’s daily needs.
Casilao said amid moves to phase-out jeepney, the increases on excise tax on oil products forced some transport groups to petition an increase on fare of jeepneys, bus and taxis
Casilao said that the government’s “anti-poor measures” negates 4.3 percent inflation rate in March–which the Bangko Sentral ng Pilipinas (BSP) already announced to be the highest since January 2013. Since the new tax law implementation, rates increased by 11.5 percentage points in the first quarter.
“Amid inflationary impacts of government policies and the new tax law, the government should be contemplating on their anti-people measures, and price control is one option to protect poor sectors. We back Suki’s demand for the welfare of the consuming public,” Casilao said.
Meanwhile, Senator Bam Aquino on Wednesday warned that employment of many Filipinos will be on the line once the government pushes the enactment of the second tax reform package, which aims to remove the tax incentives being enjoyed by certain firms.
“After the increase in prices of goods and services, the government will put the jobs of many Filipinos in peril by removing incentives to some businesses,” said Aquino.
“Kaliwa’t kanang suntok ang ibibigay ng pamahalaan sa taumbayan. Tumaas na nga ang presyo ng bilihin, ngayon naman, maraming kababayan natin ang posibleng mawalan ng trabaho,” Sen. Bam added.
Aquino said that if the tax incentives being given to PEZA-accredited firms are removed, many companies would be forced to close shop, affecting the employment of many Filipinos.
He also said investors eyeing to put up shops in economic zones will shelve their plan once the second part of the government’s tax package is enacted.
The opposition senator called on the government to further study the impact of the second tax package to Filipinos, saying the effects of the initial package have burdened the public with high prices of goods and services.
In a latest survey by Pulse Asia, 98 percent of 1,200 respondents claimed the prices of basic goods they usually purchase have increased since January of this year due to the Tax Reform for Acceleration and Inclusion (TRAIN) Act.
Around 86 percent of respondents said they were strongly affected by the increase in prices of goods, 13 percent were “somewhat affected,” and only one percent said they were not affected at all.
“The government should first consider reviewing the TRAIN Law before inflicting additional burden with the passage of the second package,” he said.
The senator has filed Senate Resolution No. 704, calling on the appropriate Senate Committees to conduct a review of the TRAIN Law, claiming it greatly contributes to the increase in prices of goods and services that burdens Filipinos, especially the poor.
He also filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.