NOT the venturous suspense-packed train ride to Bushan.
Under the Tax Reform Acceleration and Inclusion (Train), taxes have increased significantly. Excise taxes on basic and utility commodities have increased several fold.
While income tax decreases for those earning P40, 000 a month, the 15.2 million Filipino families not getting any increases in take-home pay will have to deal with more expensive food and drinks, cooking expenses, jeepney and bus fares, electricity and other goods and services beginning 2018.
The impact is even worse for the more than 35 million unemployed, underemployed and self-employed as they have to absorb more than the rest.
To date, Train tax increases have also fueled unabated fuel and electricity price increases, causing domino effects.
The most deplorable is that wages and benefits get no hikes except for the police and military, the President’s favorite; while basic services have not improved significantly contrary to official claims.
Meanwhile, sweetened beverages using caloric and non-caloric sweeteners have already been struck with P6 tax increase per liter, while those using High Fructose Corn Syrup (HFCS) got P12 tax increase per liter. Exempted are all milk, ground and 3-in-1 coffee, 100% natural fruit and vegetables, meal replacement and medically indicated beverages, beverages sweetened with coco sugar or stevia.
The past years we are witnessed to increase in the importation of cheaper sugar substitutes and sweeteners like HFCS and bioethanol. Last year, even hacienderos planting sugarcanes experienced losses due to the entry of HFCS into the country.
These were used primarily by food and beverages corporate giants like Coke and Pepsi, causing the price of sugarcane to drastically drop.
At the start of the present Crop Year (CY) 2017-18, the mill gate price of sugar on September 2017 was only P1,370/Lkg. or for every 50 kg bag.
This was much lower than last year’s CY 2016-2017 which was P1,800/Lkg.This even further diminished to just P1,175/Lkg at the end of December 2017, even when the Sugar Regulatory Administration (SRA) was forced to issue Sugar Order No. 3 on February 2017 in order to discourage the importation of HFCS.
The record shows that in the last quarter of 2017, the average composite price was P1, 271.50 and dropped to P1, 252.12, and this continued for a quarter more in 2018 at P1, 176.59.
From January to July 2017, the Philippines also imported 132 million liters of bioethanol from the US, an increase of 25% during the same period in 2016. Majority of the latter up to now is still imported from the US even if it can be produced locally from sugar and molasses.
If not modified and or given good implementing measures, Train would have a debilitating impact on sugar industry as it could lower the consumption of domestic raw sugar as more industrial and commercial users turn to much cheaper sugar substitutes like HFCS.
But affected the most are the sugar workers who already suffer lack of job security, low wages and deplorable working conditions.
This already led to mass dismissals from their jobs or forcing the remaining regular workers to join the army of contractual.
Train effects are generally far more devastating than some of its positive aspects like some exemptions.
VAT exemptions cover businesses with P3 million and below annual sales; and retained for agriproducts, health and education, senior citizens, people with disabilities, cooperatives, renewable energy, tourism, enterprises and BPOs in special economic zones, leases below P15,000 a month, condominium association dues.
Other VAT exemptions to follow are medicines for lifestyle illnesses, socialized housing, etc.
The broadening of VAT exemptions for healthy products including medicines may have opened up some opportunities for small social enterprise groups, fair trade networks, and food security movements.
Still, Train is dangerous to just ride on or even simply to ignore.
The law is premise on rehashed World Bank impositions for the Duterte administration to squeeze whatever it could from the people and our national economy and patrimony in terms of taxes and revenues – to pay soaring foreign debts, finance huge infrastructure projects, including rehabilitation of Marawi, conditional cash transfers, among others, modernization of national security and defense which only benefit the rich, foreign companies and the bureaucrats and technocrats in the administration.
Train is integral with other neoliberal measures which recklessly open up our economy to foreign capital which jeopardizes our national sovereignty, patrimony and long-term national economic development. It tracks the railway to perdition.
Maybe it’s time to get off the Train, and take another train ride, one that will make people truly achieve prosperity with dignity.
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