Aquino warns of looming price hikes as tax reform law takes effect

The increase in prices of oil products due to the Tax Reform for Acceleration and Inclusion (Train) law may have a domino effect on the prices of goods and other services in the market, Senator Bam Aquino warned on Wednesday.

“Nakakabahala ang pagtaas ng presyo ng bilihin dahil sa pagpataw ng buwis sa langis. Dagdag gastos na naman ito sa pamilyang Pilipino,” Aquino, who rejected the Train’s ratification in the Senate, said in a statement.

Under the Train law, an excise tax of P2.50 per liter would be imposed on diesel and bunker fuel starting this year, while P4.50 and P6 per liter would be imposed in 2019 and 2020, respectively, according to Aquino.

For gasoline, the senator added that the excise tax will increase from P4.35 per liter to P7 this year, P9 in 2019, and P10 in 2020.

“Sa huli, mahihirap na Pilipino pa rin ang papasan at magdurusa sa epektong dulot ng TRAIN sa presyo ng bilihin,” said Aquino, who voted against the law’s approval citing the inability of government to implement a financial assistance program in time for the increase in prices due to provisions on excise tax on fuel and sweetened beverage tax.

Senators Antonio Trillanes IV, Risa Hontiveros, and Panfilo Lacson also voted against the Train law’s enactment.

Earlier, transport group Pasang Masda said they would be asking for a P12 base jeepney fare due to the higher excise tax for oil products under the Train law.

But according to the Department of Trade and Industry, the planned increase in fuel excise tax would not apply on existing stocks of petroleum products.

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The Train law, which reduces personal income tax but imposes higher tax on fuel products, sugary drinks, and cars, among others, has taken effect on January 1.    /kga