NFA sees higher rice prices as fuel prices go up

Rice prices is expected to increase once pump prices reflect the higher excise tax rates on petroleum products under the Tax Reform for Acceleration and Inclusion (TRAIN) law, the National Food Authority (NFA) said on Tuesday.

According a “GMA News TV Live” report, the NFA noted the cost of rice could be affected since fuel is needed to transport the commodity.

The NFA does not expect the impact of higher excise tax to be drastic as there is no supply shortage of the commodity.

The Department of Energy (DOE) noted earlier that pump prices of petroleum products were likely to reflect higher excise tax rates under the Train law starting Jan. 15, 2018, when new fuel stocks roll into the market.

Republic Act 10963 or the Tax Reform for Acceleration and Inclusion law took effect January 1, mandating an excise tax of P2.50 per liter on diesel starting this year, P4.50 in 2019 and P6 in 2020. Previously, diesel did not carry any excise tax.

Also, the excise tax on gasoline will increase from P4.35 per liter to P7 this year, P9 in 2019, and P10 in 2020.

Consumer groups and senators have warned consumers that higher excise tax on fuel would have a “domino effect” on goods and services. —Margaret Claire Layug/VDS, GMA News