Having a hard time because of higher fuel prices brought about by the Tax Reform for Acceleration and Inclusion (TRAIN) law? Don’t worry, the Department of Energy (DOE) says, because it’s a sacrifice for the benefit of the Philippines.
“We might have to spend a little more, but that little sacrifice would translate to huge benefits for the country,” said DOE secretary Alfonso Cusi in a statement released earlier today.
“Let us remember that the revenues from TRAIN will fund important programs, such as free education, increase in the salaries of our public school teachers, as well as crucial infrastructures under the ‘Build, Build, Build’ program,” he added, emphasizing that the law will provide the Filipino people with more jobs and livelihood.
Cusi also promised the public that the DOE is ensuring the implementation of the TRAIN law’s second tranche will be fair and within the bounds of the law, saying the agency is being vigilant.
“We will ensure the fuel stocks for 2018 will be utilized first and sold at the pre-implementation prices,” Cusi stressed. The DOE has already reached out to several fuel stations, asking them to explain why they implemented price hikes as early as January 2, 2019.
Under the second tranche of the TRAIN law, diesel and gasoline will see an additional excise tax of P2, while household LPG will see a P1 excise tax increase. The official DOE statement adds that “there will also be an additional 12% value added tax, which totals to P2.24 for both diesel and gasoline, and P1.12 for LPG.”
Cusi pointed out that the impact of the TRAIN law’s second tranche is smaller, thanks to the recently implemented fuel price rollbacks. He emphasized, too, that forecasts do not indicate prices will skyrocket as they did in October last year.
“If the trend continues, we do not expect it to have as much impact on fuel prices as it did last year. Besides, we can cushion the effect of any new oil price increases by becoming more efficient in our use of energy,” he said.
So, how have you been coping with the TRAIN law so far?