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January 15, 2018
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MANILA – Manufacturers of basic goods do not intend to increase prices amid higher excise tax on fuel under the new tax reform law, Trade secretary Ramon Lopez said.
“All of the manufacturers such as San Miguel, CDO, URC [Universal Robina Corp.], Century [Pacific Foods], at saka ’yung Nestlé nag-sabi sila sa akin mismo last Monday na hindi sila magi-increase ng presyo due to higher excise tax sa fuel,” Lopez told GMA News Online Wednesday.
As the impact of higher fuel cost on total product cost is minimal, manufacturers decided to absorb the slight increase, the Trade chief noted.
Based on DTI’s estimates, the impact of higher excise tax rates on petroleum products to the total production cost is only 0.4 percent.
This translates to a 5-centavo average increase in the suggested retail price of prime commodities such as canned goods, noodles, bread loaf, and milk products, Lopez said.
“For example, ‘yung 5 centavos na increase ia-absorb na lang nila ‘yan kasi napakaliit lang naman,” he said.
As a result of the recently approved tax reform law or Republic Act No. 10963, diesel gets an excise tax of P2.50 per liter from zero while the excise tax on gasoline rises to P7 from P4.35 in the first year of implementation.
The excise tax rates on diesel will go up to P6 per liter by 2020, and on gasoline to P10.
Lopez said manufacturers spend less than 5 percent of the cost to transport their products.
Since manufactures have already assured the Department of Trade and Industry (DTI) that there will be no price increases, the Trade chief said there should be no unusual hikes in the SRPs of prime commodities in supermarkets and groceries.
“Dapat wala talagang paggalaw lalo na nagsabi na ang mga manufacturers na they will not pass on to their retailers ‘yung additional fuel cost,” Lopez said.
The DTI has warned establishments not to take advantage of the price situation due to the tax reform law or Tax Reform for Acceleration Inclusion (TRAIN), and urged the public to report groceries and supermarkets that will increase the prices of goods beyond reasonable levels.
For complaints, consumers may call the DTI hotline at 751-3330 or visit its website to report erring businesses.
Cases may be filed against erring establishments for violating the price law, Lopez said. (GMA News)
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