Contact Details

Rm. N-411, House of Representatives, Quezon City, Metro Manila, Philippines
+63 2 931 5497, +63 2 931 5001 local 7370

LAGMAN: SUSPENSION OF TRAIN IMPERATIVE TO TAME INFLATION

Press Statements

Opposition Rep. Edcel C. Lagman has urged the House leadership to expedite the consideration and approval of Joint Resolution No. 27 suspending the increases and scheduled increases in the excise taxes on fuel under the TRAIN law to tame the monstrous inflation rate which is expected to hit 6.8% or even higher in the fourth quarter of 2018.

The Joint Resolution was filed on September 10, 2018 by Lagman and members of the Magnificent 7, Makabayan Group and People’s Minority.

Lagman said that “it is patently a flawed policy for the Philippines, an oil-importing country, to impose additional and higher excise taxes on petroleum products, while oil producing countries are even giving subsidies to maintain at low levels the pump prices of gasoline to protect consumers.”

The adverse situation is compounded by the increasing price of oil in the international market which has breached the $80 per barrel mark, the highest since November 2014.

Assurances from the economic managers that the huge inflation rate is manageable and will be soon contained “cannot lift the burden of spiraling prices of goods and services on the public, particularly the marginalized and disadvantaged sectors.”

During the plenary debates on the 2019 General Appropriations Bill (GAB), the sponsors of the GAB have admitted that the TRAIN law is a culprit in the inordinate spike in the inflation rate.

Joint Resolution No. 27 also demanded that the government must exhaust all complementary measures to confront the inflation problem by addressing other causes of inflation like:

  1. Disjointed agricultural policy concerning timing and amount of rice imports to address short-term rice shortage problems.

  2. Lack of adequate government support to Philippine agriculture which could overcome ill effects of climate change on agricultural supply.

  3. Weak peso that makes imports costlier, particularly oil and raw materials and capital goods for the Build, Build, Build program.

  4. Unclear export promotion policy which fails to bring in dollars to help strengthen the peso.

  5. Delays in Bangko Sentral’s adjustment of interest rate to help rein in inflation.

  6. Weak implementation of the Responsible Parenthood and Reproductive Health Act that would otherwise moderate population growth and eventually decelerate demand for goods and services, thus containing increases in prices due to lesser demand.

 

EDCEL C. LAGMAN