(Eagle News) — The effect of higher excise tax on fuel on the prices of commodities due to the Tax Reform for Acceleration and Inclusion law is minimal if not null.
This is according to the Department of Trade and Industry, that called for a press conference on Thursday to address what it said were misconceptions about the new law.
Under TRAIN, the excise tax of diesel increases to P2.50 per liter from zero, while the excise tax on gasoline goes up to P7 from P4.35 in the first year of implementation.
By 2020, the excise tax rate on diesel will go up to P6 per liter.
The excise tax rate on gasoline will rise to P10 in the same year.
“There should be a minimal if at all no change on suggested retail prices dahil napakaliit ng tama nito,” Trade Secretary Ramon Lopez said.
He urged the public to report profiteering businesses, so that they may be held liable for violating the price law.
The complaints may be lodged using the DTI hotline—751-3330—or the agency’s website.
He said that the agency would hold an information campaign to raise awareness about the effects of TRAIN.