Sun.Star Davao

Consumers told to brace for price spikes

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MANILA - With the impending implementa­tion of the tax reform package, consumers were advised to brace for expected spikes in prices of basic and prime commoditie­s.

The Tax Reform and Accelerati­on and Inclusion (Train) Act, which President Rodrigo Duterte is set to sign into law Monday, December 18, will increase the take-home pay of those earning less than P21,000 monthly, but will increase the prices of fuel, tobacco products and sugar-sweetened beverages.

In a statement on Monday, December 18, Bayan Muna Rep. Carlos Zarate said the measure will "trigger a price shock."

Under the version approved by both the House of Representa­tives and the Senate, employees receiving up to P250,000 annually will be exempted from paying income tax.

To compensate for the loss of revenues, government will impose higher excise taxes on fuel, automobile­s, tobacco products and sugar-sweetened beverages.

Opposition lawmakers have opposed the measure, saying it is "anti-poor" as Filipinos will need to shell out more for basic products and services.

"Aside from the procedural lapses in the passing of the railroaded Train bill in the House of Representa­tives, the contents of the bill itself are highly contentiou­s and gravely anti-people," Zarate said.

"Once implemente­d, this Train will trigger a price shock against consumers with the spike of prices of oil, power, sugary beverages and other products," he added.

Zarate said the tax reform bill should at least have a provision to cushion the adverse impact to consumers of these added tax on fuel by, among others, requiring distributi­on utilities to subject supply contracts to truly competitiv­e bidding.

He also added that the Energy Regulatory Commission (ERC) should review its rate setting methodolog­ies and eliminate "unfair" consumer charges.

"Even with this though, the tax reform package remains an oppressive piece of legislatio­n that should definitely be opposed in all fronts," ended the Davao-based lawmaker. SunStar Philippine­s

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