Press Release
February 26, 2018

Ambush Interview: Effects of TRAIN law

SEN WIN: As of this point, TRAIN is not the reason for the rise in prices, it is a fluctuation on the global oil prices as well as the depreciation of the peso. These are the two main causes. The fluctuation on oil prices, tumaas at bumaba siya eh but definitely, this is the one affecting inflation right now. We will see the full effect of TRAIN in terms of inflation come May. All the way until August, this is really the time-table wherein mararamdaman na natin ang effects of tax reform pero ngayon wala pa.

Q: That's the reason for the mid-2018 committee hearing?

SEN WIN: We will call for another hearing before that kasi in the tax reform law, nandoon ang mitigating measures for example, ang cash transfer na 200 pesos this year and we urged the Department of Finance (DOF) and NEDA to really implement it, nandiyan na ang pera eh, 24 billion peso.

Q: Ilan ang beneficiaries doon?

SEN WIN: 10 million beneficiaries, 10 million families will receive 200 pesos every month. So dapat i-implement na yan dahil andiyan na ang pera. This is on top of what they are getting from the 4Ps which is about three thousand pesos. Next year, they will receive 300 pesos every month doon sa cash transfer.

Q: So you agree on the analysis of the Department of Finance that inflation rates are manageable?

SEN WIN: Inflation rate right now is manageable, it's not due on the tax reform because makikita natin nagflu-fluctuate talaga ang presyo ng langis at ang peso depreciation but that doesn't mean that we should not implement what is already included in the law which is the cash transfers, the national ID system. The national ID system is also very important because dito tayo magre-release ng mga targeted subsidies tulad ng discount sa mga pamasahe, at bigas.

Q: Ano pa po ang other mitigating measures to address inflation?

SEN WIN: In this discussion, merong apat; Number one, cash transfer of 200 pesos every month; number two, discount on pamasahe, 10% discount sa mga mahihirap nating mga kababayan; number three, 10% sa bigas doon sa mahihirap nating mga kababayan; and number four, tanggalin na ang quantitative restrictions para maka-import ang mga negosyante ng mas murang bigas, magpapataw na lang ng 35% tax para maka-import sila ng mas murang bigas sa ating bansa. Sa estimate natin, bababa ng almost 20 pesos per kilo if we will allow importers to bring in rice from other countries.

We have to remember that rice takes up the biggest budget of our poorest families, almost 20% ng budget ng ating poorest families goes to rice so kapag tumaas ang presyo ng bigas, kaagad ay mararamdaman nila. Isa sa mga lumabas sa hearing ay pababain ang presyo ng bigas dahil yun ang pinakamabilis na positive impact sa ating mga kababayan.

Q: Enough po ba ang cash transfers para sa mahihirap nating kababayan?

SEN WIN: In our hearing, based sa estimates ng UP, hindi sya enough. We will need approximately 200 pesos to support our poor families, ang pinakamahihirap that is why naghahanap tayo ngayon ng 300 pesos pa para makompleto ang 500 pesos na support para sa ating mga mahihirap na pamilya.

Q: How are we going to address that?

SEN WIN: Isa doon ay yung mga non-revenue measures tulad ng pagbaba ng presyo ng bigas, isa ang mga discounts, naghahanap pa tayo ng paraaan paano pa mapupunuan ang kulang na 300 pesos.

Q: Meron po bang remedial legislation na kailngan diyan?

SEN WIN: Right now, ang immediate is the removal of quantitative restrictions on rice. Isa rin dito, dapat ma-approve na ang National ID system para ma-identify na natin kung sino ang pinakamhihirap at mabigyan kaagad ng discounts. Ang funding sa national ID system, we will need approximately 15 billion pesos for that, 2 billion meron na so hahanapin na lang ang 13 billion.

Q: Bakit ganoon kamahal Sir?

SEN WIN: Malaki ang populasyon natin eh. 110 million na, of course mga adults lang ang bibigyan so approximately 60 million adults ang bibigyan ng ID. 15 billion is a reasonable estimate I think. Ang take away natin dito is we have to implement cash transfer already dahil may pondo na yan and we still have to make sure ang bigas na binibili ng mga kababayan natin ay mapababa pa ang presyo at yun siguro ang gagawin namin sa Senado, magpasa ng batas para maka-import na ang traders ng mas murang bigas pero dapat siguruhin na protektado pa rin ang ating local farmers.

Q: How soon do you see that getting done?

SEN WIN: Hopefully, ang recommendation is before the first half of the year, before June.

Q: Yung 10% discount sa rice at transport, kailangan pa ng legislation?

SEN WIN: Kailangan ng national ID system, hindi na kailangan ng legislation.

Q: Thank you Sir.

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