₱200 Monthly Subsidy Considered as Soaring Fuel Prices Continue

A ₱200 monthly subsidy, which will benefit the poor households across the country, was recently proposed by Finance Secretary Carlos Dominguez III amidst the soaring prices of fuel heightening the cost of living. This move from the Department of Finance (DOF) comes after President Rodrigo Duterte’s decision to maintain the excise tax on fuel products. Dominguez added that funding for the subsidy will primarily be sourced from the higher collection of value-added tax.

“Second, we provide targeted subsidies of ₱200 per month per household for 1 year to the bottom 50% of Filipino households. This will amount to P33.1 billion in budgetary requirements,” explained Dominguez on Wednesday. “Mr. President, we realize this is not enough but this is what we can afford as of this time. And to make sure our finances going forward and especially for the next administration are still going to be healthy, this I believe is what we can afford.”

Several legislators have likewise pointed out that the proposed monthly amount may not be enough. “Napakaliit hindi kakayanin ‘yun, hindi makakasapat (It’s a small amount, it won’t be enough),” said Sen. Ping Lacson. Sen. Kiko Pangilinan echoed similar sentiments, noting that ₱200 would be insufficient to even cover basic necessities.

“It can’t even get one a jeepney ride to the minimum distance,” affirmed Sen. Grace Poe, regarding the proposal a “pittance” equivalent to offering ₱6.66 per day. “Our people deserve more amid the battering of the high cost of living, joblessness, and continuing impact of the pandemic.”

House Deputy Minority Leader Rep. Stella Quimbo, however, continues to push for the suspension of taxes. “The DOF (Department of Finance) is willing to spend ₱33 billion for this 200 per family per month, right? So 33 is about a third of the 105 billion that DOF says they collect from excise tax,” she elaborated. “So if they are willing to spend 33 billion then they should also be willing to forego the collection of 33 billion from excise taxes.”

On the other hand, the Department of Labor and Employment (DOLE) is also looking into the possibility of presenting a ₱24-billion wage subsidy with 1 million minimum wage earners as beneficiaries, according to Labor Assistant Secretary Dominique Tutay. The proposed subsidy is targeted for distribution from April to June.

“Ito po ay subsidiya para po sa manggagawa na mga minimum wage earners po in the amount of ₱24 billion to benefit about 1 million workers sa loob po ng tatlong buwan pamula po Abril hanggang Hunyo,” said Tutay. (“This is a subsidy for workers who are minimum wage earners in the amount of P24 billion to benefit about 1 million workers within three months from April to June.”)

Sources: GMA News, CNN PH