Press Release
October 9, 2018

Senator JV Ejercito: Give Filipino families a break

AMIDST skyrocketing inflation rate and consecutive oil price increases, Senator JV Ejercito repeated his call for the suspension of the second round of excise tax increases due to kick in this January 2019.

"I urge our economic managers to be sensitive to the plight of Filipino families who are struggling with skyrocketing inflation rate and unabated fuel price hikes", Ejercito said in a statement released Tuesday.

He argued that whatever purchasing power was added to Filipino consumers by virtue of the decrease in income tax under the TRAIN law has been "obliterated" by a 9-year high 6.7% inflation rate in September and oil price increases for 8 consecutive weeks.

Under the TRAIN law which took effect last January 2018, the tax rate of those earning between P250,000 and P400,000 per year was reduced to 20%. Those earning between P400,000 and P800,000 has a tax rate of 25%.

Those earning an annual salary of P250,000 or below no longer pays any income tax.

But Ejercito noted that inflation has negated most of the TRAIN law benefits.

He added that world crude prices which is currently at more than $80 per barrel, is expected to reach $100 per barrel in the coming months.

"I believe it's time to give Filipino families a break. Defer the second round of increase in excise taxes on fuels scheduled to kick in this January 2019. At the very least, this will give our people a breather from spiraling prices of goods," the re-electionist Senator emphasized.

Under the law, the excise tax on diesel is scheduled to go up to P4.50 in 2019 while gasoline will increase to P9 at the start of next year.

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