The country’s economic managers should man up and start addressing the surge in inflation, Senator Joel Villanueva said Wednesday.
“Wag na tayong maghugas kamay na sabihin na maliit lang yan, na nanggagaling sa TRAIN 1 (Let us not wash our hands and say that it is small and that it’s brought on by the Tax Reform for Acceleration and Inclusion law),” he told reporters.
Villanueva was reacting to calls for the passage of the second package of the administration’s tax reform program, where corporate taxes are expected to be reduced.
The senator disclosed that when they were discussing the measure with the Department of Finance (DOF), National Economic and Development Authority (Neda), and other economic managers, they have consistently given reminders of the effects of anticipated inflation.
But the economic managers failed to anticipate the inflation rate, one of the highest in five years.
The central bank’s Department of Economic Research predicted that inflation rate for July will rise between 5.1 and 5.8 percent.
READ: July inflation seen as high as 5.8%
Villanueva called on the DOF to address the inflation as increasing prices of goods and service impact Filipinos.
He urged the country’s economic managers to consider lowering the value added tax (VAT) from 12 percent to 10 percent.
“Anong mga puwede nating gawin (What can we do) and for me, as I was saying, I am more than willing to entertain the idea of lowering our VAT, from 12 percent to 10 percent,” he said. /ee
READ: Senate eyes reduction of 12% VAT to 10%