As you know that we’ve all seen the negative effects of poorly thought-out TRAIN Law, which was supposedly meant to overhaul the outdated National Internal Revenue Code (NIRC) which was adopted 20 years ago. Of course, with the primary intention of ensuring higher tax collections to offset BIR’s poor tax collection efficiency. It is supposed to be a one size fits all problem. Basically, its a short-cut to try and ease out problems with the government’s tax-collection problems.
But most importantly, it is sold to the public as primary means of generating additional revenues to fund its “Build, Build, Build” projects and other programs.
Also, promising tax-breaks for the ultra-rich and of course tax-exemptions to those barely earning more or less than the minimum wage, whilst eroding pretty much of their savings through higher prices of basic commodities, services and goods.
This law took effect as of January 2018 and since then caused huge pains to the pockets of every ordinary Juan. In fact, according to data presented by IBON Foundation that the poorest 60% of Filipinos were losing as much as 5,600 pesos from higher consumption taxes and inflation.
We’re experiencing low inflation rates and as well as big rollbacks from the prices of oil — so why worry?
The reason why inflation as well as the prices of oil suddenly plummeting down to manageable levels is not a result or influenced by Duterte himself but rather caused by international oil oversupply. But we can’t be too happy about just that yet as we know that the prices of oil in the International market is volatile and in most cases influenced by sudden geopolitical events.
In fact, November of last year. Duterte was forced to suspend the implementation of excise taxes in oil products to ease the burden of inflation that is the consumer public. Prices of commodity spiraled out of control along with protests from transport groups seeking higher fare due to high prices of petroleum and diesel.
So that in itself is an example that we shouldn’t go on and slapping hefty excise taxes in petroleum and diesel products since these are very important materials required to run almost everything in a moving economy. It runs factories, generators, trucks, cars, trains, public transport like jeepneys and buses and ships. It runs almost everything, and in the event that the prices of oil in the world market spike up again, then so do ours in a much more expensive way brought about by the several tranches of hefty taxes imposed per liter of petroleum and diesel products.
This 2020, we could only brace of ourself as another tranche of excise taxes will soon be imposed in almost all petroleum and diesel products. Here’s a quick breakdown from Rappler.
So before under NIRC unleaded premium gasoline carries taxes of more than 5.35 pesos/liter and now in 2020 that’ll be doubled to around 10 pesos. That’s all within just a fraction of two years.Then, we have diesel fuel, which is what most trucks for delivery, buses and jeepneys used to ferry in commuters or deliver products and materials would now have an additional 6 peso/ liter excise tax when previously before TRAIN this was not even taxed due to the fact that this was noted to be ”poor mans oil” and that by taxing it would cause a myriad of issues and economic deadweight to the consuming public. Perhaps, those heaviest hit by this would be the jeepney drivers and also farmers looking to have their goods delivered. Just imagine the domino effect with all these additional taxes designed to enrich our treasury and ensure that most of Duterte’s crocodiles could get their hands on almost anything they want.
For example. Cayetano is giving away 150,000 pesos Christmas bonus to all House of Representatives employees. And then we have the notoriously expensive SEA Games cauldron rumored to be 50 times over-priced.
So you can see from here forward where all of our money is being spent? It’s being spent bribe, control, manipulate and of course enrich Duterte and his crocodiles in the Congress.
2020 isn’t really a good year for us all. But at least it’s just two years closer to 2022.