These numbers support their claim that tax reform isn’t the culprit.
The Department of Finance dismissed critics of the Tax Reform for Acceleration and Inclusion (TRAIN) law, saying that it is not the biggest factor driving prices of goods up.
Finance Undersecretary Gil Beltran schooled senators during a recent hearing, saying that the recent spike in inflation was largely due to record-high rates of global crude prices.
Beltran explained that petroleum prices went up by 34 percent year-on-year during the first quarter, but only 7 percent is attributable to TRAIN.
“The rest (27 percentage points) is a result of the higher world prices of crude oil and the peso depreciation,” Beltran said a statement.
“Higher crude oil price and currency depreciation account for P9.10 or 22 percent of retail price, while additional excise tax on fuel arising from the TRAIN contributed less at P 2.80, including additional VAT, or 7 percent of retail price.”
Will this end calls to repeal the tax law once and for all?