A labor group criticized the government for not providing safety net measures to millions of poor Filipino families from abusive traders and profiteering activities due to the implementation of Tax Reform for Acceleration and Inclusion.
“We are greatly concerned over government’s inadequate response to provide social safety nets to millions of poor Filipinos who are about to fall into deeper poverty due to inflation brought about by the implementation of TRAIN’s excise tax on fuel and sweetened beverages,” Associate Labor Unions-Trade Union Congress of the Philippines spokesperson Alan Tanjusay said.
The labor group earlier said that without fixed wages and not covered by social protection benefits, informal sector workers are among those who stand to be worst hit by TRAIN.
“An estimated around 15.6 million underground economy workers will be affected by the TRAIN law,” Tanjusay said.
The labor group is looking for the mechanics and the implementing rules and regulations of the TRAIN plan to dole out P200 a month to those poor economically affected by the rise of inflation.
“This TRAIN is a strategic project of the Duterte administration yet it looks like the implementing rules are not ready and the government institution that would actualize the social safety net program for the poor is unprepared. Is TRAIN a big joke being played on poor Filipinos? Tanjusay said.
The group also slammed Trade and Industry Secretary Ramon M. Lopez for giving vain lip service on government protection to consumers.
“Stores and local markets have already irresponsibly increased the prices of basic and prime commodities even before their old inventories are used up. Government must step in to ensure consumer protection.
“There are laws and regulations against profiteering but we don’t see them, we don’t feel government is protecting us from profiteers and profiteering,’’ Tanjusay added.
Also adding its voice in opposing TRAIN is the Kilusang Magbubukid ng Pilipinas, which said that the new tax measure will severely affect rice farmers and threaten the country’s rice production and food security.
“TRAIN will definitely wreck our livelihood and drive us into a state of hunger,” said Danilo Ramos, chairman of Kilusang Magbubukid ng Pilipinas, in a statement.
“The overall rice production and consumption will be affected by TRAIN. TRAIN will cause worsening hunger among the poorest of the poor. Whatever minimal gain that low to middle employees will get from TRAIN will be easily offset and swept by rising prices of commodities, services and public utilities,” said Ramos.
Ramos said the new excise tax on oil products will result to a minimum 20 percent additional cost in the use of fuel-run farm equipment.
He said that farmers will have to shell out more money out of their pockets for the added cost on production brought about by TRAIN.
He added that from an average P33 per liter last year, diesel prices have gone up to at least P40 per liter, even as the cost of fuel prices are even higher in the provinces.
In a sample case study, the KMP said a rice farmer in Bulacan province tilling one hectare of rice land will have to shell out additional P294 per hectare per cropping for the use of mechanized hand tractor to pull and harrow rice lands during land preparation. This does not include added cost for the use of water pump for irrigation, use of dryer, payment for rice milling, transportation of rice produce and other daily expenses.
According to government data, the country has 4 million hectares of rice harvested lands. This minimum sample computation would translate to a P1.176-billion additional cost for land preparation alone.
Other farm inputs such as seedlings, fertilizer, pesticides are also expected to increase. Food prices and commodities will increase too under TRAIN.
“This situation will have a domino effect on rice prices. Rice marketers and retailers are also expected to pass on added cost to consumers, resulting to hike in rice prices. We see prices of commercial rice increasing up to as much as P58 to P60 per kilo at the minimum in the coming months,” Ramos said.
The current average price of commercial rice per kilo in retailers is P50 to P55 per kilo. NFA rice price averages at P38 to P40 with reported increase in some areas.
The NEDA has already rejected the NFA’s proposal to increase the buying price of rice from local farmers by P5 per kilo from P17 to P22. The NFA is also poised to import 250,000 metric tons of rice this year.
“These factors will affect severely the livelihood and economic state of rice farmers and TRAIN will make it worse,” Ramos said.
KMP will join nationwide mass protests the “regressive” TRAIN tax measure implemented by the Duterte government.
