NO COMMENT ON TRAIN FOR NOW: DTI-6 awaits IRR on tax reform law

The Department of Trade and Industry (DTI-6) said it is still waiting for the Implementing Rules and Regulations (IRR) of the tax reform law.

DTI-6 regional director Rebecca Rascon refrained from further commenting on the effect of the implementation or the Tax Reform for Acceleration and Inclusion (TRAIN) law in 2018.

She said the advisory or IRR might come out on or before Jan 15, 2018 based on the statement of Secretary Ramon Lopez.

“I will refrain from further analyzing due to the lack of IRR. By Jan 15 we might already have advisories or IRR that will help us implement the law clearly,” she said.

But Rascon said the increase in excise tax of fuel products would result in higher prices of prime commodities which will affect the purchasing power of the public.

“Maybe there will be reduction in the consumption. Kay if in case magmahal man gid buhinan ta ang consumption ta. Indi na lang ta magbakal kag mangita ta substitute,” she said.

She said it may also lead to consumers prioritizing the important goods that they will buy.

“Like sa softdrinks kun magmahal na gid i-prioritize mo na lang kun ano ang pinakaimportante kag indi ka na magbakal sugary products,” she said.

Secretary Lopez earlier said that the effect of TRAIN on prices of prime commodities would be minimal.

“There should be a minimal if at all no change on suggested retail prices dahil napakaliit ng tama nito,” he said in a press conference.

Lopez said the effect of additional excise tax on petroleum products to production costs of manufacturers is only 0.4 percent.

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