Lopez allays fears over price hikes due to TRAIN

DAVAO CITY – Trade Secretary Ramon M. Lopez has allayed fears that the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) will result in significant increases in the prices of basic commodities.

During a price monitoring round at the Victoria Plaza Mall here on Friday, Lopez maintained that prices of most commodities will remain unchanged even if the tax reform law will lead to an increase in oil prices.

He vowed that the agency will continue to monitor grocery products nationwide, and make sure that establishments do not take advantage of the consumers.

Lopez noted that his agency has not seen any movement in the suggested retail price (SRP) of basic commodities.

Lopez said a negligible 5-centavo increase will be added to the costs of the basic goods due to the increase in the oil prices.

He added that manufacturers were not bent on increasing prices due to the tax reform law implementation or recommend for the adjustment of the SRP anytime soon.

“Wala talaga syang effect. Ang impact on gasoline hindi ganun ka laki, napakaliit lang (There’s really no effect. The impact of gasoline is not really big. It has very little effect),” he said.

In press briefing at the Malacañan Palace on January 8, Finance Secretary Carlos G. Dominguez III said the tax reform package will correct the unfair, complex, and inefficient tax system.

“Package one corrects the longstanding inequality of the tax system, thereby giving relief to 99 percent of taxpayers after 20 years of non-adjustment while broadening the tax base,” he said.

Under provisions of the TRAIN, he explained workers can save additional 121,000 from their 1250,000 annual salaries while a tax rate of 20 percent of the excess of 1250,000 for workers whose income ranges from 1250,000 to 1400,000.

He added the first 190,000 of the 13th month pay and other bonuses is exempt from income tax.

He said 99 percent of taxpayers will pay less income taxes while the top one percent with taxable income above P8 million will pay more.