Alejano: Rise in prices of basic goods hits poor Filipinos the hardest

MANILA - Magdalo party-list Rep. Gary Alejano has filed a resolution seeking a congressional review of the implementation of government's tax reform program.

The Tax Reform for Acceleration and Inclusion (TRAIN) law, which represents the first package of President Rodrigo Duterte's tax reforms, took effect on Jan. 1, raising duties on fuel, cars, and sugar-sweetened drinks to offset a reduction in personal income tax rates.

Alejano cited the rising prices of commodities when he sought a probe into TRAIN's implementation through House Resolution No. 1838.

"Sinabi ng ating gobyerno, don't worry, 'di lalampas ng 4 percent ang inflation rate during the deliberations. Sinasabi ng economic managers ng Duterte administration 'di ito lalampas ng 4 percent. Now 4.5 percent na po tayo... unang quarter pa lamang," he said.

(Our government said during the deliberations, don't worry, the inflation will not breach 4 percent. The Duterte administration's economic managers said the same thing. It's now 4.5 percent, and it's just the first quarter of the year.)

Alejano also criticized the administration for saying TRAIN would bankroll the government’s infrastructure program when most of it would be financed through loans.

“TRAIN will not subsidize 'Build, Build, Build.' Doon sa discussion sa Senado and even sa Kongreso (At the Senate and even the Congress), it was found out that only 16 percent will be used in the proceeds of the TRAIN in the Build, Build, Build... The remaining 84 percent will be sourced from foreign loans,” he said.

Alejano also noted that government has been awash with cash.

He said there was P596 billion in unused appropriation in 2016.

Out of the total, P195 billion was not released by the Department of Budget and Management while P410 billion was unobligated or had remained unused even if the funds were released.

He also said the government has P273 billion in so-called continuing appropriation.

"Ibig sabihin may certain laws na nage-generate ng pera, may multi-year na projects na ginagamit taon-taon," he added.

(This means there are certain laws that generate money, there are multi-year projects that are used every year.)

Half of the unobligated allotment and continuing appropriation, he said, would be deemed as savings.

"Ang tanong natin, kung may sobrang pera, bakit tayo nangungutang? Kung may sobrang pera, bakit nagpapasa ng additional burden sa mamamayan?" said Alejano.

(The question is, if we have excess money, why are we taking loans? If we have excess money, why are we passing the additional burden to the citizens?)

ANTI-POOR?

Alejano said the rise in prices of basic goods has hit poor Filipinos the hardest.

"This is contrary to what the Duterte administration promised and projected. The common Filipino now suffers under the weight of the new TRAIN Law. And it has only been 4 months since the law took effect, yet we see the results to be totally inimical to its objectives,” the lawmaker said.

Alejano said he wants to find out if there is a need for the continued implementation of the tax law or if Congress needs to suspend it due to its effects on the poor.

He said he intends to find out if there are measures that could be in place to cushion the effects of tax reform.

NUMBERS SPEAK

Alejano also cited as basis the recent Pulse Asia survey, which saw almost all respondents saying that prices of basic commodities have gone up, with some 86 percent saying they were strongly affected by price hikes.

• Pulse Asia: Most Filipinos 'strongly affected' by price hikes in basic goods

“What is also telling in this survey is that while 86 percent were strongly affected, only 1 percent registered that they are not affected at all, as some 13 percent were somewhat affected. So all in all, a total of 99 percent were affected and, again, this is only after 3 months of the law’s implementation,” Alejano said.

The lawmaker said the tax law would levy P1 per kilogram in 2018 for LPG, with increases of P2 per kg and P3 per kg in 2019 and 2020, respectively.

It will impose an increase of P2.50, P4.50 and P6 per liter on diesel fuel for the years 2018, 2019 and 2020, he said. Increases on the price of gasoline will meanwhile be P7, P9 and P10 per liter for the same period, while the price hike for kerosene will be P3, P4 and P5 per liter, also for 2018, 2019 and 2020.

“Parang nabundol ng rumaragasang tren ang ating mga kababayan. Alam naman natin kung gaano kahalaga ang piso lalo na sa mahihirap. Kung ganito sa unang 3 buwan, ano pa ang aasahan natin sa mga susunod na taon?” Alejano stressed.

(It's as if a speeding train slammed onto our countrymen. We know the value of one peso, especially for the poor. If this is the situation in the first 3 months alone, what else can we expect in the coming years?)

He also made reference to earlier pronouncements of Duterte’s economic managers, who predicted inflation rates of up to 4 percent and said that the tax law would only affect the rich.

“Nakikita naman natin ngayon, 4.5 percent na ang inflation rate at 99 percent ng mga Pilipino ang apektado. 'Yung mga mayayaman, 'yung nasa 1 percent hindi apektado," he said.

(We can see now that the inflation rate is at 4.5 percent and that 99 percent of Filipinos are affected. Only the rich, those who are part of the 1 percent, are not.)

"There were also reports that [the] inflation rate would continue to increase up to 6 percent in the following months, contrary to the initial assurance of the Duterte administration,” he added.

Alejano also cited data from the Philippine Statistics Authority (PSA), which showed that the consumer price index (CPI) for the bottom 30-percent income households, or the poorest of the poor, rose to 5.3 percent from January to March this year, up from 2.6 percent a year ago and 3.4 percent last quarter.

There are also concrete examples of a rise in prices of some commodities, according to PSA. Since December 2017, fuel prices have gone up P5 per liter for gasoline, P7 per liter for diesel, and P8 per liter for kerosene.

“All indicators point to these undeniable truths: that there is truly [an] increase in prices of basic goods, that the projections of the Duterte administration [are] wrong, and that there is a need to arrest these increases by repealing – or at least studying – the provision that has a domino effect on the prices,” Alejano explained.

“Damang-dama na ng mga mahihirap nating kababayan ang pagtaas ng presyo. At hindi ito titigil kung hindi tayo kikilos ngayon na," he said.

(The poor are feeling the price hike. And this will not stop if we are not going to take any action.)

"I urge my colleagues in Congress to support the resolution and ascertain in concrete terms the deleterious effects of the TRAIN law on the poor,” the Magdalo lawmaker said.