This is higher than the existing estimates of the Philippine Statistics Authority (PSA), which pegs the number of local informal sector operators at 10.5 million.
ALU-TUCP spokesman Alan Tanjusay said workers in the informal sector will be worse off with the implementation of the TRAIN since they will be made to pay more taxes without getting additional income.
Workers in the informal economy include independent, self-employed, small-scale producers, and distributors of goods and services, who are not covered by labor laws and have no social protection.
“Underground economy workers will be impacted by the rise in prices of commodities and in increase in the cost of services caused specifically by the TRAIN’s excise tax on fuel, sweetened beverages, and coal,” Tanjusay said.
Unlike workers in the informal economy, Tanjusay noted, employees with taxable income would benefit from TRAIN through its adjusted income tax exemptions.“TRAIN widened the base of those exempt from income tax – from minimum wage earners to mid-level wage earners – exempting those employees getting P250,000 a year or P21,000 a month. It also raised taxable bonuses from P82,000 to P90,000,” Tanjusay said.
But none of these benefits affects informal economy workers, he said. Instead, they will all suffer from high prices of goods and services.
ALU-TUCP called on President Duterte to postpone the implementation of TRAIN until the government can provide the necessary protection to workers in the informal sector.
“The TRAIN has no policy or program for them. We urge government to improve its social safety-net protection to underground economy workers to save them further from falling deep into extreme poverty. This is the only way we can protect them,” Tanjusay said. - By Samuel Medenilla
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