Starting this January 2019. Duterte signs the TRAIN Law Package 1B which offers tax-cuts adjustments to consistent tax-evaders. Many criticized this move as something that reward tax delinquents for bad behavior and encourages continued tax evasion. In fact, it is expected that thousands of delinquent taxpayers will be able to settle their unpaid tax liabilities at a discount and be freed of any civil, criminal and administrative liabilities.
Remember that the last time the government offered tax amnesties in this extent was from 2007 under the term of Gloria Macapagal Arroyo. This move incentivize repeat tax evaders,and actually facilitate corruption by periodically erasing evidence of pervasive non-collection by the authorities.
Global price cuts of oil from world market. But its still expensive in PH?
Price cuts of oil-prices in the world market helps eases the prices of oil. But the effect it too little to be felt in the Philippines. Since Duterte repeatedly disregarded opinions from opposition senators to repeal TRAIN Law as its causing so much strain on the people’s income and operational expenses who offsets the extra cost in fuel to the prices of their products.
There’s a huge gap of oil prices this year and last year. For example, pump prices increased from Php47.94 to Php53.85 for every liter of gasoline; Php35.79 to Php43.05 for diesel; and Php41.52 to Php52.70 for kerosene.
TRAIN Law Package 1B – Pro Rich and Anti Poor
As it appeared too obvious now. The latest tax reforms which will be implemented next year will surely be welcomed by consistent tax-evaders and high income households as it allows them to pay less of their tax liabilities than ever before. While adding extra excise taxes on the working class minimizes their purchasing power and puts them in a very disadvantageous position.
Duterte’s senseless policies only aggravated the economic gap between the richest and poorest of the poor. Instead of lifting them up and creating more jobs. Duterte only seeks to keep himself in power and reward his allies and friends so he can continue buy their loyalties in exchange of the people’s gross inconvenience.
FACT : The poorest 60% households income eroded to about Php 2,500 to Php 6,800 during the first ten months of 2018 (Source : IBON Foundation)
Just imagine that? 2,500 to 6,800 off your income due to high prices of goods and fuel isn’t going to help. If not worsen the daily lives of ordinary Filipinos.
Until now Duterte continues play deaf and numb in the cries of its own people. Insensitivity and arrogance combined.
This 2019. Additional excise taxes will be imposed and tax-cuts for the rich. Who will feel the brunt of these excise taxes? The poor and we will soon expect that there will more families struggling to feed their children or send them to school.