[av_one_full first min_height=” vertical_alignment=” space=” custom_margin=” margin=’0px’ padding=’0px’ border=” border_color=” radius=’0px’ background_color=” src=” background_position=’top left’ background_repeat=’no-repeat’ animation=”]
[av_heading heading=’Gird for ‘price shocks’ due to tax reform, warns solon’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”][/av_heading]
[av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” admin_preview_bg=”]
AP
Filipino customers are seen falling in line to pay at a convenience store in Metro Manila.
MANILA – Bayan Muna party-list representative Carlos Zarate on Monday warned of a possible “price shock” affecting consumers when the tax reform measure takes effect.
Zarate made the claim as he reiterated the opposition of progressive lawmakers against the supposedly “railroaded” Tax Reform for Acceleration and Inclusion (TRAIN) bill.
“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 in a statement.
“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.
Under the TRAIN bill, the income tax of wage-earners would be decreased, but the excise tax imposed on goods and services would be increased.
The Senate and the House of Representatives have ratified the bill on Wednesday, the last day of session in Congress this year.
Zarate, meanwhile, reiterated that the TRAIN is “full of additional burden to consumers.”
“In the power sector, according to Meralco, the addition to the power cost will be P0.04 to P0.08 per kilowatt hour. The impact of requiring them to hold a truly open bidding for these generation supply would be P0.30 to P0.60 per kilowatt hour,” he said.
“With this, the tax reform bill should at least have a provision to cushion the adverse impact to consumers of these added tax on fuel, to require all distributions utilities to subject to truly competitive bidding the supply contracts for power,” he added.
Zarate also highlighted the need for the Energy Regulatory Commission to review its rate setting methodologies to prevent unfair charges to consumers.
“Even with this though, the tax reform package remains an oppressive piece of legislation that should definitely be opposed,” he added.
Zarate and ACT party-list Representative Antonio Tinio have said they will question the TRAIN bill’s ratification before the Supreme Court, claiming it was railroaded by President Rodrigo Duterte’s allies in Congress. (GMA News)
[/av_textblock]
[/av_one_full]
