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Du30 Year 2: It's the economy, stupid

ABS-CBN News

<div><em><strong>Taxes, inflation, peso in spotlight as Duterte marks 2nd year</strong></em></div><p>After the war on drugs took center stage in President Duterte&#x27;s first year in office, gut issues related to the Philippine economy were in the spotlight in the second year of the administration. </p><p>The first package of the Tax Reform for Acceleration and Inclusion (TRAIN) took effect in 2018, with income tax breaks being offset by higher taxes on commodities such as oil and sugar-sweetened beverages. </p><p>Due partly to higher world oil prices and a shortage of subsidized NFA rice, consumers grappled with rising inflation that prompted monetary authorities to raise borrowing costs for the first time in 2 years.</p><p>Here are some key economic events that happened in the last 12 months, with President Rodrigo Duterte saying the &quot;economy is in the doldrums&quot; around a week before completing a third of his 6-year term. </p><div class="media-content"><div class="slider-for"><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/06/30/06292018-du30-year-2-1.jpg"/></div><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/06/30/06292018-du30-year-2-2.jpg"/></div><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/06/30/06292018-du30-year-2-3.jpg"/></div><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/06/30/06292018-du30-year-2-4.jpg"/></div><div><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2018/news/06/30/06292018-du30-year-2-5.jpg"/></div></div><div class="media-content slider-desc"><div class="item-desc"><p>A woman uses her mobile phone as she waits for customers at a stall in Kamuning Market on Tuesday, June 26, 2018. <cite>Jonathan Cellona, ABS-CBN News</cite></p><h1 class="heading">TAX RELIEF FOR MOST INCOME TAX PAYERS</h1>Lower personal income tax rates took effect on Jan. 1 under the Tax Reform for Acceleration and Inclusion or TRAIN, resulting in higher disposable incomes for those working in the country&#x27;s formal economy.<br/><br/>However, the first package of tax reforms also raised duties on fuel, cars and sugar-sweetened drinks and raised the scheduled increments in tobacco and liquor taxes.<ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/01/04/18/cost-of-train-will-softdrink-fuel-taxes-offset-higher-take-home-pay">Cost of TRAIN: Will softdrink, fuel taxes offset higher take-home pay?</a></li>	<li><a href="https://news.abs-cbn.com/pinoytaxreformcalculator">Tax Reform Calculator</a></li></ul></div><div class="item-desc"><p>Motorists queue at a gasoline station in Manila on May 28, 2018 as fuel prices go up. <cite>George Calvelo, ABS-CBN News</cite></p><h1 class="heading">INFLATION PAIN</h1>Inflation breached the government&#x27;s 2 to 4 percent target in April, prompting the Bangko Sentral ng Pilipinas to raise its benchmark rate twice this year, for a total of 50 basis points.<br/><br/>Duterte&#x27;s economic managers said TRAIN should not be blamed for rising consumer prices, as they deployed unconditional cash transfers to the poor and moved to lower the price of rice.<br/><br/>Higher fuel prices prompted transport groups to seek fare increases. Philippine Airlines and Cebu Pacific also sought the restoration of a fuel surcharge.<ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/06/05/18/inflation-holds-at-5-year-high-46-percent-in-may">Inflation holds at 5-year high 4.6 percent in May</a></li>	<li><a href="http://news.abs-cbn.com/business/03/22/18/interest-rates-are-rising-what-does-this-mean-for-your-loans">Interest rates are rising: What does this mean for your loans?</a></li>	<li><a href="http://news.abs-cbn.com/business/06/08/18/with-p42000-monthly-budget-a-family-of-5-can-live-above-poverty-line-pernia">With P42,000 monthly budget, a family of 5 can live above poverty line: Pernia</a></li></ul></div><div class="item-desc"><p>Militants protest for workers’ rights in Manila on Labor Day, May 1, 2018. <cite>Mark Demayo, ABS-CBN News</cite></p><h1 class="heading">FIGHT AGAINST &#x27;ENDO&#x27;</h1>The President on Labor Day said he signed an executive order that will stop illegal contractualization.<br/><br/>Duterte promised during the campaign to stop the hiring of workers in 5-month-long cycles, which companies had long abused to avoid paying benefits due to regular workers.<br/><br/>The labor department has also ordered Jollibee and PLDT Inc to regularize thousands of workers.<ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/news/05/01/18/your-days-are-numbered-duterte-signs-eo-to-stop-endo">&#x27;Your days are numbered&#x27;: Duterte signs EO to stop &#x27;endo&#x27;</a></li>	<li><a href="http://news.abs-cbn.com/business/05/28/18/govt-tags-jollibee-dole-pldt-in-endo-fight">Gov&#x27;t tags Jollibee, Dole, PLDT in &#x27;endo&#x27; fight</a></li></ul></div><div class="item-desc"><p>A bank teller counts Philippine peso for a client selling US dollars in Manila on November 21, 2008. <cite>Romeo Gacad, AFP/ FILE</cite></p><h1 class="heading">PESO BREACHES 53 vs $1</h1>Foreign investors began shifting their funds to the US, where yields are higher, as the Federal Reserve proceeded with its policy tightening.<br/><br/>This increased demand for dollars, causing the peso to weaken to the P53 level in June, a weakness not seen since 2006. Fast-growing imports due to the government&#x27;s infrastructure program is also weighing on the local currency.<br/><br/>Economic managers said the weak peso would increase the value of remittances from overseas Filipinos and export earnings.<ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/06/13/18/why-the-peso-is-languishing-vs-the-dollar">Why the peso is languishing vs the dollar</a></li>	<li><a href="http://news.abs-cbn.com/business/11/28/17/why-bsp-purposely-allowed-more-volatility-in-peso-dollar-exchange">Why BSP &#x27;purposely&#x27; allowed &#x27;more volatility&#x27; in peso-dollar exchange</a></li></ul></div><div class="item-desc"><p>President Duterte and members of his delegation witness the signing of Business Letters of Intent at the Golden Coast Hotel in Boao, Hainan Provnce, People&#x27;s Republic of China on April 10, 2018. <cite>Richard Madelo, Malacanang Photo</cite></p><h1 class="heading">&#x27;NO MORE WAITING&#x27;</h1>Duterte in May signed the Ease of Doing Business Act, requiring government agencies to act on applications within 3 days for simple transactions, 7 days for complex ones and 20 days for the highly technical.<br/><br/>He also signed laws that extended the validity of passports to 10 years, and driver&#x27;s licenses to 5 years.<ul class="op-related-articles">	<li><a href="http://news.abs-cbn.com/business/05/28/18/duterte-signs-ease-of-doing-business-act">Duterte signs Ease of Doing Business Act</a></li>	<li><a href="http://news.abs-cbn.com/news/08/02/17/duterte-signs-into-law-measures-extending-passport-validity-to-10-years-drivers-licenses-to-5-years">Duterte signs laws extending passport, driver&#x27;s license validity</a></li></ul></div></div></div>

<p>Gut issues related to the Philippine economy were in the spotlight in the 2nd year of the Duterte administration. <br /> </p>

Gut issues related to the Philippine economy were in the spotlight in the 2nd year of the Duterte administration.