The poorest 7.4 million Filipino families struggle with just P10,400 or even less per month.
With TRAIN, they will have P77.77 more in additional expenses monthly or P933.24 annually in 2018. This is due to the oil, sugar, and tobacco taxes, VAT, and inflation.
There are no off-setting personal income tax gains. It takes the P200 monthly cash transfer for them to ‘gain’ P1,466.78 under TRAIN for the year. The cash transfer increases to P300 in 2019 and 2020 (which not coincidentally are also the years that oil excise taxes keep rising).
The economic managers make a big deal out of these cash transfers. Yet they belittle how much P933.24 means to poor families trying to survive on just P10,400 monthly.
But then there are no more cash transfers from 2021 onwards. By this time, TRAIN will basically just be taking away at least P933.24 annually from the country’s poorest families who can’t afford to lose any more of the little that they have. To pay for infrastructure that none of them will use or really benefit from. # (Sonny Africa, IBON Executive Director)