The economic think tank Ibon Foundation on Saturday challenged the Department of Finance (DOF) to be more transparent regarding the impact of the new tax reform law on ordinary Filipinos.
Ibon criticized the administration鈥檚 鈥渄ownplaying鈥� of the true effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law, particularly on low-income families.
鈥淲e ask for something as simple as placing on their website the breakdown of the impact of the tax measure per income decile,鈥� IBON executive director Sonny Africa told reporters. 鈥淭hese would be the impact in terms of income tax and of each tax measure 鈥� from oil products and even cosmetics.鈥�
Africa said Ibon had only received 鈥減artial responses鈥� from the DOF to their multiple requests for the estimates of the impact of the TRAIN law, while the House of Representatives ways and means committee provided only 鈥渙ld computations,鈥� which were based on estimates before the measure was deliberated in Congress.
鈥淭he Department of Trade and Industry (DTI) supposedly showed during the Senate hearings their estimates 鈥� but those original estimates and methodology were from 2016 to 2017,鈥� he said. 鈥淲hen the deliberations began, they have stopped releasing their data.鈥�
Ibon had denounced the newly implemented measure as 鈥渁ntipoor,鈥� saying that it would benefit the rich more. Despite the reduced personal income taxes, the group said the majority of Filipinos would shoulder the burden of additional taxes on petroleum products and sweetened beverages, among others.
Africa also slammed DTI鈥檚 claims that the TRAIN law would have minimal to negligible impact on the public.
鈥淩ight now, the DOF makes quantitative statements that there is no effect, but they would raise revenues. But where would these come from?鈥� he asked. 鈥淩evenues don鈥檛 fall from the sky. It comes from the people鈥檚 pockets.鈥�
He recalled two previous instances when oil prices went up: in 1995-1996, when the oil excise tax was imposed, and in 2005, when the expanded value-added tax law was passed.
鈥淚n those two years, on the basis of one tax measure alone on oil products, inflation rates went up, as well as the prices of basic goods and services,鈥� Africa said.
鈥淚t is unfair for the government to say that the TRAIN law would have no effect because if that鈥檚 the case, then the government would not raise any revenue,鈥� he added.
Trade Secretary Ramon Lopez earlier assuaged fears that the prices of basic commodities would soar under the new tax reform law.
Lopez said manufacturers could raise the 鈥渟uggested retail price鈥� of goods they produced as long as the increases were 鈥渏ustifiable,鈥� but they were also expected to absorb the higher production costs resulting from the additional tax on fuel.