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Tax reform has ‘minimal’ impact on prices of consumer goods —DTI
Philippines: The enactment of the Tax Reform for Acceleration and Inclusion (TRAIN) law contributed minimally on prices of consumer goods, the Department of Trade and Industry (DTI) said Wednesday.
In a press conference in Makati City, Trade Undersecretary Ruth Castelo said prices of consumer goods were only minimally affected by the passage of the TRAIN Law.
“The effect of TRAIN Law Package 1 on BNPCs (basic necessities and prime commodities) ranges from only 4 centavos to 25 centavos,” she said.
President Rodrigo Duterte signed the proposed tax reform proposal into law on December 19. It reduced the personal income tax and expanded the value-added tax (VAT) base.
With the tax reform law in effect starting Jan. 1, 2018, inflation in January registered at 4.0 percent, the fastest in over three years.
But Castelo said the increase in prices of consumer goods was mainly due to other factors.
“The increase that you will see now on the prices of BNPCs is caused by other factors such as foreign exchange, presyo ng raw materials ... at ang presyo ng crude oil na ini-import natin from Dubai,” she said.
“The price of crude oil has increased in the international market, not only the selling price to the Philippines,” Castelo noted.
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