High prices loom as price hike on fu­els, ex­cise tax starts to­day

Sun Star Bacolod - - Top Stories - BY TERESA D. ELLERA

THE busi­ness sec­tor in Ne­gros Oc­ci­den­tal fears for the in­crease in the prices of prime com­modi­ties in­clud­ing la­bor with the im­po­si­tion of big-time price hike on fuel prices cou­pled with the im­ple­men­ta­tion of the sec­ond tranche of the ex­cise tax on fu­els.

Frank Car­bon, ex­ec­u­tive Di­rec­tor of the Metro Ba­colod Cham­ber of Com­merce and In­dus­try, said the to­tal in­crease in the price of diesel alone is pegged at more than P4 per liter start­ing to­day.

“We fear on the sud­den spi­ral­ing of the prices es­pe­cially the ba­sic com­modi­ties like what hap­pened last year when the Tax Re­form for Ac­cel­er­a­tion and In­clu­sion (Train Law) was im­ple­mented,” Car­bon said.

He said: “We have been ex­pe­ri­enc­ing high prices of food and ba­sic com­modi­ties and every­thing...we can­not imag­ine the in­crease in prices start­ing to­day.”

Be­cause of the sit­u­a­tion, the busi­ness sec­tor is ex­pect­ing a slow down in their busi­ness sales ex­cept on food, he added.

“Ma­jor­ity are de­pen­dent on salaries so we ex­pect peo­ple to just give pri­or­ity on food for the fam­ily so many busi­nesses may slow down even the tourism in­dus­try be­cause peo­ple may no longer have ex­tra money for travel and other as­pects of liv­ing,” Car­bon pointed out.

He said that 70 per­cent of the con­sumers are salaried in­di­vid­u­als who rely on their salaries for the daily liv­ing.

As some of the gaso­line com­pa­nies said they will im­ple­ment the fuel price hike to­day, other gas com­pa­nies have al­ready im­ple­mented the in­crease since yes­ter­day at the av­er­age of P2 per liter. This is the sec­ond in­crease in fuel prices for this year, Car­bon said.

With the im­ple­men­ta­tion of the ad­di­tional ex­cise tax, the price of diesel is ex­pected at P4.50 per liter and P3.50 per liter for gaso­line which will def­i­nitely af­fect the take-home pay of the driv­ers, he added.*

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