DTI: Effect of TRAIN on prices of prime commodities minimal

The Department of Trade and Industry (DTI) on Thursday allayed fears that higher excise tax on fuel products due to the Tax Reform for Acceleration and Inclusion (TRAIN) law would increase the prices of prime commodities.

"Dapat 'wag mangamba ang ating mamimili na magtataasan lahat," Trade Secretary Ramon Lopez said in press conference in Taguig City. "There should be a minimal if at all no change on suggested retail prices dahil napakaliit ng tama nito."

Based on DTI's estimates, Lopez said, the effect of the higher excise tax rates on petroleum products to the total production costs of manufacturers is only 0.4 percent.

He said manufacturers spend less than 5 percent of the cost to transport their products.

"Ang ko-computin mo is epekto ng excise tax sa fuel, epekto ng fuel sa total production cost, sa total sale price ay napakaliit po 'yun," Lopez said.

As a result of the recently approved tax reform law 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.

With this the DTI expects the following adjustments on suggested retail prices of some prime commodities this year:

• Canned sardines weighing 155 grams priced at P13.45 may increase by P0.04.
• Corned beef weighing 175 grams at P33.50 may increase by P0.07.
• Instant noodles at P7.30 may increase by P0.03.
• Loaf bread at P35 may increase by P0.14.
• Detergent soap at P20 may increase by P0.04.
• Meat loaf at P18.40 may increase by P0.04.
• Condensed milk at P54.50 may increase by P0.11.
• Evaporated milk at P38.15 may increase by P0.08.

"Very minimal lang... ang point lang po natin is I am sure some manufacturers may even not adjust their SRPs and therefore 'yung mga groceries walang karapatang mag increase ng kanilang mga presyo," Lopez said.

"Unang-una they nasa batas natin na they have to price their products within SRP. It could be lower but not higher so 'yun titignan natin sa pag-momonitor kung sumusunod pa sila," he added.

Lopez said prices of goods should not increase as there are still "old stocks" in the market before the law took effect.

"We are leaning towards January 15 as the point na wala pang changes," he said as some inventories may last from seven days to two weeks.

The Trade chief warned those who may engage in profiteering as the tax reform law takes effect. He urged the public to report groceries and supermarkets who increased the prices of their products unusually.

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.

"Right now, we have 70 monitoring in NCR and we asked in the provinces na mag-increase sila ng mga monitoring team nila to ensure na walang magsamantala," he added. —KBK, GMA News