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Group revives warnings on price hikes of goods due to 2nd tranche of fuel excise taxes

FILE PHOTO: A woman waits for customers inside a food market in Paranaque, Metro Manila, Philippines August 7, 2018. REUTERS/Erik De Castro

An organization of supermarkets warned that the price of primary goods will increase due to impending increase on fuel excise taxes in 2019.

Philippine Amalgamated Supermarkets Association (PAGASA) president Steve Cua said that the prices of meat products, vegetables, and fruits will be affected by the additional taxes.

Cua pointed out that transportation is used to deliver the said products to markets, supermarkets, and stores.

Due to Republic Act 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) law, the government placed a Php 2.50 excise tax per liter of diesel, and a Php 7.00 excise tax per liter of gasoline starting January 2018.

The said excise taxes is scheduled to increase by Php 2 on January 2019.

Initially, the Department of Finance said that they plan to suspend implementing the said increase due to the increasing cost of petroleum products in the world market and the growing inflation rate in the Philippines.

However in November, the Development Budget Coordination Committee recommended continuing with the scheduled implementation of the said taxes citing the recent series of price rollbacks in petroleum products.

As of Tuesday, Dec. 04, Budget Sec. Benjamin Diokno reported that President Rodrigo Duterte has approved the recommendation to continue with the implementation of the second tranche of fuel excise taxes under TRAIN law.

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