BUKLURAN ng Manggagawang Pilipino (BMP) is urging the government to suspend the Tax Reform for Acceleration and Inclusion (TRAIN) law amid rising tensions between Iran and the US.
In a statement BMP Chairman Ka Leody de Guzman, said the suspension the law is needed in order to cushion the imminent impacts of a rise in inflation if the conflict between the US and Iran further escalates.
De Guzman pointed out the administration of President Rodrigo Duterte should protect the consumers and overseas workers by acting quickly and decisively to shield the them from inevitable price hikes on basic goods, a likely outcome triggered by a spike on the price of oil in the world market.
“The president should quit dilly-dallying and immediately issue an executive order that will suspend the collection of excise and value added taxes on oil to avert inflationary impacts on commodities. He must have the foresight and diligence to act swiftly in behalf of our struggling countrymen," he said.
Latest global oil prices report that the price of oil has risen by over four percent—Brent rose to $69.16, while WTI increased 4.3 percent to $63.84 making investors increasingly anxious.
De Guzman warned that the effect of a harsh price increase to the Filipino people, especially those living in the poverty line, will be "fatal."
“The Duterte regime is duty-bound to protect the welfare of the Filipino people, above all. It should sacrifice and share the burden for the sake of the people. But if apologists in the bureaucracy would argue against the suspension of oil taxes by pointing to losses in government revenue, then the BMP demands that it pursue other sources, particularly by increasing taxes on properties, luxuries, and corporate incomes,” he pointed out.
He further added even if the TRAIN law indicated that tax increases may only be suspended once global crude oil prices reached or exceeded $80 per barrel, he says that the catastrophic outcomes of a full-blown US-Iran conflict will not be limited to international oil prices.
De Guzman warned that a full blown US-Iran conflict may push global crude oil prices to $80 per barrel, which will have a compounded and multi-faceted effect on the local economy. Prices would shoot up, including the rates of the oil-dependent energy sector. OFW remittances would drop.
Employers would cut losses by resorting to abusive practices. Hoarders and speculators would use the opportunity to rake in quick profits.