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THE National Food Authority (NFA) in Negros Occidental allayed fears among local consumers of higher prices of commercial rice with the implementation of the tax reform law.

Marianito Bejemino, provincial manager of NFA-Negros Occidental, Monday, January 8, said the Tax Reform for Acceleration and Inclusion (Train) will have a “minimal” impact on the prices of rice.

Bejemino said they are looking at P1 to P2 possible increase per kilogram of commercial rice, not this quarter, most probably in July during the start of lean months. He said that the increase is not mainly attributed to the effects of the tax reform law.

“The Train law may result to additional production cost among rice farmers and millers as various machineries require fuel use,” Bejemino said, adding that “movement in market prices are also dictated by other factors, including supply and demand.” In fact, the increase in production cost can still be offset if farmers are able to increase their yield, he added.

The Train law signed by President Rodrigo Duterte last month reduces the rate of income tax being shouldered by individual tax payers, but increased excise tax on fuel products, new vehicles and sweetened beverages. In December last year, NFA-Negros Occidental already noted an average increase of about P1 per kilogram of wholesale commercial rice in the province, but the increase in wholesale price has not significantly impacted retail prices.

Bejemino said that, for now, local rice consumers have nothing to worry since the recent increase in prices came in time for the harvest of second cropping to start in February. The increase is not yet due to the tax reform law. Unless there is a drop in production next month, prices of commercial rice may increase, Bejemino said.

“We have yet to have the computation as to how much really the effect of Train on the price of rice, but we are looking at minimal amount only,” he said, adding that regular market price monitoring of NFA is ongoing. Amid apprehensions among consumers, NFA-Negros Occidental assured the public that its P27 per kilogram rice remains available in the market. This provides consumers the option over commercial rice with prices that are higher, it added.