Price shocks remain as long as Train Law is implemented: Bayan Muna

Bayan Muna Rep. Carlos Isagani Zarate and Bayan Muna chairman and former Rep. Neri Colmenares on Monday said that “the estimate of the grocery owners group that price increases will probably last till the end of the year is very conservative but at the same time burdensome to consumers,”

“This estimate is conservative and may mislead Filipinos to think that the price shocks will stop by the end of the year. But if one is to read the TRAIN Law it states that an excise tax of P2.50 a liter is imposed on diesel and bunker fuel starting January this year but this rate will go up to P4.50 in 2019 and P6 in 2020. This means that the excise tax on gasoline has already increased from P4.35 a liter to P7. It will go up to P9 in 2019 and P10 in 2020,” said Zarate.

“We saw and are still reeling from the effects of the P2.50 increase in oil excise tax,imagine what the effects would be when the P4.00 and P6.00excise tax is implemented. Baka wala na halos mabili ang mga consumers sa taas ng presyo ng bilihin, tapos ngayon tataas pa ang tinapay at manok,” Zarate said.

“We must also not forget that under the TRAIN law there is a P50/metric ton excise tax is the first phase of the tax impositions for this year. That will go up to P100 per metric ton next year; and to a higher P150 per metric ton in 2020. Of course, there are a lot of other tax impositions under the TRAIN law but the oil and coal tax are among the tax impositions that would have the biggest impact on consumer products and services,” said Colmemares.

“Kaya hindi uubra ang pagbago lang o paglalagay ng Suggested Retail Price (SRP) sa mga produkto dahil iikutan lang ito ng mga manufacturers at mga nagbebenta. Sa ganitong mga suhestiyon ay pumupostura lang sila na parang may ginagawa para sa mga consumers pero di naman din bumababa ang presyo ng bilihin,” added Colmenares.

“Di rin uubra ang sinasabing loan na pwede daw makuha sa Social Security System (SSS) at sa Department of Trade and Industry (DTI) dahil sa epekto ng TRAIN dahil pataas pa din ang presyo ng bilihin at kailangan pa ding bayaran ang mga loan na ito,” explained Colmenares.

“It is clear that unless the TRAIN Law is repealed we are in for bigger price shocks as the years go on. No amount of unconditional cash transfers or pantawid pasada can change the fact that the TRAIN Law is anti-poor and anti-people. We are again calling on the House leadership to expedite the hearings for House Bill 7653 to repeal the TRAIN Law and lighten the burden of Filipinos,” said Zarate. (PR)