DTI-ZDS intensifies price monitoring: Impact of TRAIN to basic goods

By Jong Cadion

PAGADIAN CITY, Zamboanga del Sur (January 8, 2018) -  The Tax Reform for Acceleration and Inclusion (TRAIN) Act was enacted last December 19, 2017 and took effect on January 1, 2018. It aims to overhaul the outdated National Internal Revenue Code (NIRC) and increase everyone’s buying capacity.

The year 2018 naturally started with a different kind of boom - a public clamor over the sudden increase in prices of goods affected by the TRAIN. In a public statement released last January 4, 2018, Secretary Ramon Lopez of the DTI told the public not to panic, as the TRAIN has minimal impact on the prices of goods. The Chief also said that the agency doesn’t expect a drastic increase in the SRP but expects a price change from the raw materials which will then affect the finished product pricing. An example would be an increased price of meat would affect canned meat products, wheat would affect flour, and flour will affect bread prices.

However, due to the agency’s mandate to ensure the availability and affordability of basic necessities and prime commodities at all times, without prejudice to the interest of businesses, the DTI-Zamboanga del Sur Provincial Office conducted and intensified daily price monitoring starting January 5, 2018, to monitor the direct effects of the TRAIN’s implementation to the prices of basic goods, if any.

The monitoring results suggest that there were no significant increases in the prices of goods under the agency’s jurisdiction and that supplies are generally stable. The agency also conducted a Dialogue today with the owners and managers of the major supermarkets, groceries and retailers in the city to also hear what they had to say. The dialogue was also attended by the Revenue District Officer of the Bureau of Internal Revenue, Mr. Aminoding B. Macarampat, to further inform them of the salient features of the new law. Also in the dialogue were Pagadian City Consumers Association, Incorporated (PCCAI) President Ms. Luz Yañez and Vice President for Mindanao of the Philippine Chamber of Commerce and Industry, Inc. Ms. Mercedes Lourdes Quisumbing.

The dialogue went well, as both sides agreed with matters pertaining to prices. The owners unanimously agreed that they will wait for the SRP from their respective suppliers or from the DTI before they will have to increase the prices of their commodities under the agency’s jurisdiction. The products that were directly affected by the price increases so far were the following; 1) powdered juices which significantly increased from P6.00 to P16.00 at most or a P10.00 increase; 2) cigarette packs, which costs an additional P15.00-P20.00 per pack; and 3) sweetened beverages with an approximate P6.00-P10.00 increase.

Provincial Director Maria Socorro M. Atay of the DTI on the other hand, ensured the store owners and managers that the agency will closely coordinate with them regarding the updates in prices provided by manufacturers/producers at the national level through information sharing from the National Price Coordinating Council down to the local.

PD Atay also said that the agency will continue to intensify the price monitoring, to include establishments in growth center municipalities of the province.

Overall, the agency believes that the benefits of the new law will outweigh the disadvantages which will in turn redound to greater inclusive growth and shared prosperity for all.