DOF insists inflation to stay manageable despite higher fuel tax

While higher fuel taxes under House Bill (HB) 4774 or the proposed Tax Reform for Acceleration and Inclusion Act are inflationary, its impact on consumer prices will be manageable, the Department of Finance (DOF) said on Wednesday.

“There are many concerns that this tax reform may increase prices. Our estimate is that if we account for the impact of higher diesel and gasoline on food, transportation, electricity and others, what we are actually seeing is only a moderate increase in inflation of 1.5 percentage point, on top of the current inflation rate of 1.8 percent,” Finance Secretary Karl Kendrick Chua said during a briefing by DOF officials on HB 4774 before the House Committee on Ways and Means.