THE Department of Trade and Industry (DTI) in Negros Occidental dismissed reports that the tax reform law has already resulted to increases on prices of prime and basic commodities in the province.
Lea Gonzales, provincial director of DTI-Negros Occidental, told SunStar Bacolod that based on the results of their monitoring, local establishments remain compliant with the agency’s suggested retail prices (SRPs).
President Rodrigo Duterte on December 19 signed into law the Tax Reform for Acceleration and Inclusion (Train) Act, which exempts taxpayers with an annual income of P250,000 and below from paying personal income tax.
As the tax reform law benefits the minimum wage earners, it also imposes excise tax on sweetened beverages, petroleum, automobile, tobacco, and coal.
Gonzales said the same SRPs are still in effect thus, there should be no upward movement on prices of prime and basic commodities with the start of the implementation of tax reform law.
Basic necessities under DTI’s monitoring include products like soap, milk, coffee, salt, bread, and sardines. Examples of prime commodities are noodles and all kinds of canned goods except sardines.
Under existing SRPs, the prices of canned sardines in 155-gram cans, for instance, still range from P14.25 to P15.75 while prices of 390 grams detergent soap remained steady at P19.35 to P20.
For other basic commodities, prices of 150 grams powdered filled milk range from P43.50 to P50; coffee with net weight of 25 grams - P16.75 to 17.75; and for bread, Pinoy pandesal remained at P21.50 and loaf bread at P35.00.
In terms of prime commodities, prices of instant noodles remained between P6.30 to 7.30. Luncheon meat, meanwhile, with net weight of 165 grams costs P30.55 to P30.95.
Prices of construction materials, which are also under DTI’s monitoring, remained steady.
A 40-kilogram cement ranges from P199 to P258, depending on the brand. Deformed steel bars cost P128 to P133 per kilogram, and nails at P70 per kilogram.
“Manufacturers and big retail establishments still have remaining inventories thus, we are expecting the effect of Train on the latter part of the month during the start of new production,” Gonzales said, adding that possible increase of about P0.40 in prices of some products is negligible.
The DTI-Negros Occidental official also pointed out that their price monitoring only covers big commercial establishments and stores like supermarkets and wet markets, not sari-sari stores.
As per instruction of the DTI Central Office, Gonzales said softdrinks and other sugar-sweetened beverages are now under their monitoring.
Based on their monitoring, there is “no significant increase yet in the prices of softdrinks” opposite to claims of some consumers.
“Prove these claims,” Gonzales urged.
Though the possible existence of “unscrupulous” stores cannot be discounted, the DTI urged consumers to report to them incidents of overpricing.
Gonzales said once the disparity of effective price versus the SRPs is significant, the agency will then visit and check the concerned establishments.
“Establishments selling products higher than the SRPs should prove that necessary increases should be made due to reasonable factors like higher transportation cost,” she added.