How can the new taxes affect grocery prices?

The TRAIN law might not increase grocery prices directly, but it does, however, increase the price of gas which can then cause the prices of basic commodities to increase.

The new TRAIN law has brought about mixed reactions from a lot of Filipinos. On one hand, some argue that the lowered taxes will be useful for Filipinos trying to make ends meet. On the other hand, some fear that the additional taxes, particularly on petroleum products, might jack up the prices of basic commodities.

While we can’t say for certain whether or not the TRAIN law will have a negative impact on consumers, it’s still a good idea to be aware of how it can affect our daily needs.

As a result of the fuel hike brought about by the train law, the price of basic commodities could possibly increase.

Which grocery prices will be affected?

According to the Department of Trade and Industry (DTI), while it’s true that gas prices will go up as a result of the TRAIN law, they shared that it will only have a minimal impact on the prices of basic goods. That’s because according to the DTI, transportation only accounts for 5% of production costs.

Here’s a list of common grocery items that might be affected, according to an infographic from ABS-CBN News:

Sardines (155g) – from 13.45 to 13.49 pesos

Meat loaf (170g) – from 18.40 to 18.44 pesos

Corned beef (175g)- from 33.50 to 33.57 pesos

Coffee (25g) – from 19.70 to 19.74 pesos

Coffee (50g) – from 39.40 to 39.48 pesos

Powdered milk (150g) – from 50 to 50.10 pesos

Instant noodles (55g) – from 7.30 to 7.33 pesos

Pandesal (250g) – from 21.50 to 21.56 pesos

Loaf bread (600g) – from 62 to 62.18 pesos

Condensed milk (300ml) – from 54.50 to 54.61 pesos

Evaporated milk (410ml) – from 38.15 to 38.23 pesos

Toilet soap (50g) – from 27.50 to 27.54 pesos

Detergent soap (150g) – from 20 to 20.04 pesos

Cement (40kg) – from 205 to 206.57 pesos

It is important to note that these prices are estimates based on sample computations from the DTI, so these prices are subject to change depending on the product itself.

Source: news.abs-cbn.com

Photos from: maxpixel.freegreatpicture.com

READ: Tipid Mommy Shares: Grocery shopping hacks to help you save!

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Jan Alwyn Batara

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