As inflation soars to fresh high, lawmakers reiterate call for TRAIN brake

MANILA, Philippines — As the country's inflation soared to a fresh five-year high, some lawmakers are urging the administration of President Rodrigo Duterte to reassess its tax reform law and start rolling back its excise tax on fuel.

Philippine inflation rose to 5.2 percent in June from May's 4.6 percent, pushing the year-to-date inflation to 4.3 percent, which is higher than the central bank's estimate of 2-4 percent.

June's inflation was due to higher-than-expected price hikes in alcohol and tobacco, transportation and food, according to the Philippine Statistics Authority.

Nestor Espenilla, the Bangko Sentral ng Pilipinas governor, said that they would continue to bring inflation to its normal level and described the latest data as a "setback."

Sen. Paolo Benigno Aquino IV, one of four senators who voted against the measure, and Rep. Gary Alejano (Magdalo) reiterated their call for the government to suspend the collection of excise taxes on petrol under the tax reform program.

Aquino has filed a bill in the Senate calling for the rollback of fuel excise tax should inflation for three consecutive months went beyond official estimates.

"The message of the 5.2-percent inflation is clear. We should step on the brake of the TRAIN (law) immediately because the public is already drowning in surging prices," Aquino said, referring to the law's official name, the Tax Reform for Acceleration and Inclusion Law.

Aquino said that he had received numerous complaints from Filipinos in different parts of the country about the high prices of goods and services and the lack of support from the Duterte administration.

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Aside from the suspension of the collection of excise tax on fuel, Aquino is also batting for the immediate rollout of mitigating measures under the tax law such as unconditional cash transfers to poor households and subsidies for jeepney drivers.

Alejano also blamed the rise in prices on the government's tax reform measure.

Duterte's economic managers said that only a small percentage of the increase could be attributed to the TRAIN law.

Alejano said that the government was doing a "great disservice" to Filipinos in its failure to fully appreciate the law's impact especially on poor Filipinos.

"The continued disapproval for the TRAIN Law comes not as some fabricated lie to bring down the President and his cohorts, but a protest against the cruelty of this administration’s so-called reforms," he said in a statement.