MANILA – An official of the Department of Finance (DOF) emphasized on Monday that inflation would have moved at a faster rate with or without the Tax Reform for Acceleration and Inclusion (TRAIN) law.
“Merong epekto ang TRAIN sa inflation. Pero, whether there was TRAIN or not, our inflation rate would have been relatively high. Kasi ang contribution po ng TRAIN doon sa 5.2 percent ay 0.4 – roughly eight centavos for every additional peso,” DOF assistant secretary Tony Lambino said in an interview.
“‘Yung 92 centavos galing po ‘yun sa ibang sources. First is ‘yung presyo ng imports natin ng oil. Talagang tumaas ‘yan ng malaki mula nang May 2017. Tapos may exchange rate depreciation pa tayo,” Lambino noted.
The Philippine Statistics Authority has reported that inflation registered at 5.2 percent in June, the fastest in at least five years with 2012 as base year.
Lambino said the acceleration may be attributed to the resumption of classes and the rainy season.
“Nagtaas talaga ang presyo sa education expenses, tuition, tsaka school supplies. Tsaka nagkaroon tayo ng supply issue sa vegetables, nagumpisa ‘yung mga bagyo, medyo nalunod ‘yung ibang mga vegetable crops,” Lambino said.
Critics are blaming the TRAIN law for higher prices of goods and services.
The proposed TRAIN Act, signed into law by President Duterte last Dec. 19, cut the personal income tax rate but expanded the value-added tax (VAT) base.
Socioeconomic Planning secretary Ernesto Pernia has said that inflation is likely going to “taper off” by the end of the year.
“An important and urgent challenge to manage inflation is actually the need to increase the supply of goods and services, especially food – in particular rice, which takes up a large chunk of the food budget of poor families,” Pernia said.
“When demand outweighs supply, naturally prices go up,” he said. (GMA News)
