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Bacolod City, Philippines Friday, January 3, 2020
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Labor braces for 3rd
tranche of tax hikes


The labor sector in Negros Occidental is bracing for the effects of the third tranche of excise tax increase that took effect on January 1, Wennie Sancho, secretary-general of the General Alliance of Workers Associations, said yesterday.

“We will be greeted by oil price hikes this 2020. The implementation of the last tranche of excise tax on gasoline, diesel and liquefied petroleum gas will be followed by oil price hikes,” he said, adding that this will also result to increase in the prices of basic goods and services.

He said the transport sector had already indicated that they will file a consolidated petition for fare hike this month.

Under Republic Act 10963, or the Tax Reform for Acceleration and Inclusion Law, another increase will be implemented in fuel excise taxes at P1 per liter for gasoline and kerosene, P1.50 per liter for diesel, and P1 per kilogram for LPG this 2020.

When the TRAIN Law took effect in 2018, the excise tax rates of fuel products ranged from P3 to P8 per liter. The implementation of the last tranche brings the excise tax to P10 per liter from P9 in 2019.

Sancho said the extraordinary increases in petroleum products, basic goods and services will trigger a "supervening condition" that shall compel organized labor to file a petition for another round of wage increase before the regional wage boards to protect the erosion of the workers’ purchasing power.

“The year 2020 will be another year of the workers’ struggle as we face more challenges to our advocacy,” he added.*


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