Tax reform seen to encourage workers to invest

ABS-CBN News

Posted at Apr 16 2018 12:01 PM

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MANILA - With higher take-home pay under lower income taxes, Filipinos should consider investing, an economist said.

"They should think about the extra money that could go to investments. The inflation rates, its not like it will take a lot for consumption expenses," Alvin Ang, former president of the Philippine Economic Society told ANC's On the Money.

"So generally, on an average a person will have an extra P1,000 that they can put on an investment," he added.

Ang said what was more obvious to consumers was the spike in consumer prices due to higher taxes on fuel, sugar-sweetened drinks and cars.

The hike in prices of goods overshadows the benefits the TRAIN law, Ang said, adding there's a lack of good government campaign.

The full impact of tax reform will be felt by June to July with inflation estimated to reach 5 to 6 percent, he said.