The government has once again imposed price hikes on oil and basic necessities, further worsening the condition of the informal sector. Although the government has found ways to lower inflation and create jobs for Filipinos, it is still insufficient as conditions of the Filipino informal sector remain depressing.
A December 2024 SWS survey revealed that 59% of Filipinos consider themselves poor. According to informal economy research group Philippine Resource Center for Inclusive Development (Inklusibo), the extreme belt-tightening measures taken by the poor are not enough to put food on the table. The group argues that it should be time for the government to focus its efforts on local production, lowering taxes, and expanding the scope of basic services to ensure that poor Filipino families can meet their basic needs.
Price Hikes on Goods; Less Food on the Table
According to the Department of Trade and Industry (DTI), it was necessary to increase the prices of goods due to the manufacturers’ struggles. They claim that the price increase will be minimal, with some BNPC items increasing by less than or equal to 5% and others by less than or equal to 10%.
Oil companies have also raised the prices of fuel for three consecutive weeks this year, with the biggest surge being imposed today, January 21, by more than P2 per liter. The government has constantly blamed geopolitical tensions and global market speculation. However, a great portion of the total retail price of oil is increased significantly by government-imposed taxes such as the value-added tax and the excise tax that disproportionately affect ordinary Filipino consumers, most of which are informal workers and minimum wage workers. .
Furthermore, the Land Transportation Franchising and Regulatory Board (LTFRB), in a statement said they are studying the possibility of a 15-peso base fare for public transportation, which will only put the interests of jeepney drivers against the interests of passengers and commuters.
For Inklusibo, any increase to the prices of food and basic commodities is significant especially for the informal sector who grapple with low wages and very minimal government support. The group further argues that the Filipino people, especially the informal sector, is being neglected by the Marcos Jr. government due to its insufficient measures in protecting the lives and livelihoods of the Filipino people.
‘Nasaan ang Pondo?’
As the prices of basic needs soar, cases of misuse and misallocation of public funds seem to remain rampant in the Marcos government. From Vice President Sara Duterte’s saga of public fund malversation, Marcos also has his version of possible corruption with the approval of the 2025 budget. The Marcos administration has prioritized inflating the budget of the Department of Public Works and Highways (DPWH) and other big-ticket infrastructure spending under the Department of Transportation (DOTr) while cutting the budget foressential social services such as housing, healthcare, and education.
The government has long imposed taxes on ordinary citizens while giving tax breaks to large multinational companies and billionaires. Inklusibo stresses that this is proof that the government continues to prioritize their own personal interests and the insterests of the ruling elite over the needs and welfare of Filipinos.
Therefore, Inklusibo emphasizes that the majority of government spending should go to the basic needs of Filipinos, such as healthcare, housing, and employment. The regressive taxes that burden the poor should also be removed, and in place, impose higher taxes on large corporations and billionaires.
For the group, this cost-of-living crisis must be urgently resolved by the Marcos government through (1) increasing the budget on social services, (2) cutting regressive taxes and taxing the rich, and (3) legislating a significant wage increase,
According to Hans Bautista, Executive Director of Inklusibo, “There are many ways to achieve an inclusive society for the informal sector, but the best way is our collective action to hold the negligent government accountable.”