DTI: No significant price hikes since TRAIN implementation
BASIC GOODS
Almost eight months since the implementation of the Tax Reform for Acceleration and Inclusion (Train) law, prices of majority of basic necessities and prime commodities remain the same, the Department of Trade and Industry (DTI) said.
For those that have increased their suggested retail prices (SRP), the DTI said the reason is mostly the higher cost of raw ingredients and packaging materials.
DTI Director for Consumer Protection and Advocacy Lilian Salonga reported during a recent public information campaign in Cebu that as of August 15, 2018, 72 percent of basic necessities in the market have retained their SRPs from the one in November 2017.
Basic necessities being monitored by the DTI include canned sardines in tomato sauce, processed canned milk, coffee refill, 3-in-1 coffee, bread, instant noodles, salt, detergent or laundry soap, bottled water, and candle.
According to Salonga, only some brands of processed canned milk, canned sardines, detergent, and candle have increased their prices.
On the other hand, for prime commodities which include canned meat, condiments, toilet soap, and batteries, 41 percent have increased their prices since November last year.
“For canned fish, the increases were between 3 to 18 percent. This is mainly due to the raw materials and packaging as well as the fishing ban. The world market price for tin is also rising,” Salonga explained during a public forum in Cebu last week.
Processed milk which increased between 2 to 11 percent and canned meat which increased between 1 to 4 percent, the reason cited by manufacturers include the price of raw materials and the foreign exchange rates.
Soap, which increased between 1 to 4 percent, and candles, which increased between 6 to 7 percent, cited raw materials as the reason for their increase.
Salonga said that it was only manufacturers of condiments, which increased prices between 2 to 4 percent, that specifically cited the implementation of the Train law as reason as well as raw materials and packaging.
The Train law was implemented starting January 1 this year.
The major price increase brought by the law is on tobacco and soft drinks which is attributable to the imposition of new and higher excise taxes under the Train law.
The DTI pegged increases for tobacco products and soft drinks to be between 40 to 60 percent.
Although fuel and oil products were also slapped with excise tax, the DTI said that the increase in prices for fuel and oil are mainly attributable to general increase in the world market prices.
Many critics have blamed the Train law for the continuous increase of inflation rates in the country this year which has averaged 4.5 percent in the first seven months of this year.
The highest inflation rates were recorded in June at 5.2 percent and in July at 5.7 percent.
Yet despite saying that Train law has not significantly increased prices of basic necessities and prime commodities, Salonga said the DTI will intensify price and supply monitoring activities nationwide.
“We will also coordinate closely with stakeholders in ensuring reasonableness of prices of basic necessities and prime commodities,” she added.
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