MANILA, Philippines — President Rodrigo Duterte is leaving it up to Congress to decide whether to amend the Tax Reform for Acceleration and Inclusivity, which some sectors are blaming for the rising prices of goods.
Duterte said he cannot dictate on Congress on what to do with TRAIN, which came into effect on January 1.
"The law was enacted by Congress, I’ll leave it to Congress to decide whether or not to amend or suspend or modify the law. I’ll leave it to Congress. There’s no value in giving (them) what I want," the president said.
"If I tell them we need it for the 'Build, Build, Build' and (they say otherwise), I can't do anything. If they say 'well, we’ll just have to bite the bullet and go on, I also cannot do anything if that's their decision," he added.
TRAIN, which took effect on January 1, reduced income taxes but imposed new taxes on diesel, liquefied petroleum gas, kerosene and bunker fuel for electricity generation and higher taxes on other oil products.
The Finance department pushed for the measure to fund key government projects including the P8.4-trillion 'Build Build Build' infrastructure program.
Some groups claim that the higher fuel tax is burdensome to consumers because it jacked up the prices of goods.
Finance officials, however, maintain that TRAIN has had little effect on commodity prices and insist that the price increases were caused mainly by the spike in rice prices, a weak peso, and rising oil prices abroad.
Some senators have called for the suspension of the fuel tax provisions to provide relief to consumers.
The law, however, states that the provision on fuel excise tax may only be suspended in the next tranche of increase in the excise prices of oil, which will happen in January next year.
This means that even if global oil prices average $80 per barrel - the threshold stated in the law - consumers cannot expect a suspension of the fuel tax provisions this year unless the TRAIN law is amended.
Duterte said the Philippines is experiencing difficulties because it does not have enough oil sources.
"Indonesia had it. Malaysia has it. Brunei has it. We were at the mercy of the oil-producing nations. And sometime in 1972, there was this reduction of supply...Pag tumaas ang oil, talagang maghahabol tayo (If the oil prices increase, we would really experience difficulties)," the president said.
"We are having difficulties because we have to import oil. We do not have a supply of that," he added.
"We are doing fine...The problem .... we have to buy oil to run everything including to reach where you want to work. If you have to ride, it’s eating oil. That machine is a product of oil in the factories. Powered by oil," the president said.
"Maybe some problems here, there, but we are in a hurry in our infrastructures. But always the rate of speed with which we will produce or finish them is really dependent on a one vital commodity that we do not have. It’s oil," he added. —Alexis Romero
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