Favila said the DTI will launch a nationwide price monitoring effort to guard against premature and unnecessary price increases following the final Supreme Court decision on the Expanded Value Added Tax Law (EVAT).
Favila made a surprise visit to the Sangandaan Market in Caloocan City and Muñoz Market in Quezon City yesterday morning with Undersecretary for Consumer Welfare Zenaida C. Maglaya.
In Metro Manila alone, the DTI has increased the number of markets it monitors from 36 to 58.
According to Favila, "we cannot control prices, but we can proactively safeguard consumers against runaway prices and unfair trade practices. We are deputizing as many employees as needed to monitor the markets."
Favila stressed that the EVAT is not yet being implemented, and that there should be no movement on prices at present.
The EVAT will be implemented on Nov. 1. Favila assured consumers that prices of basic necessities and prime commodities should remain stable upon the EVAT’s implementation, as agricultural products are still exempt from VAT while processed goods are already subject to VAT. "Manufacturers have told the DTI that the EVAT will affect overall production only by two percent and that they can just absorb the minimal adjustment and not pass it on to consumers," explained Favila.
At the Muñoz Market, three retailers were summoned for investigation by the DTI for selling basic goods at a price grossly in excess of their true worth.
One was selling Ligo sardines for P12, while two others were selling Bear Brand powdered filled milk (80 grams) for P25 and P21, respectively.
The prevailing price of Ligo sardines is P10.50; Bear Brand powdered filled milk 80g, P18.
"The retailers will have to present to us their reasons for the big discrepancy in their prices compared with the prevailing prices of the same products in Metro Manila. If they cannot, then they can be charged for profiteering," said Maglaya.
According to Republic Act 7581 or the Price Act, raising the price of a commodity sold to the general public by more than 10 percent of its price in the immediately preceding month is considered prime facie evidence of profiteering.
The trade officials also caught a vendor using a defective weighing scale in Muñoz Market.
"A number of vendors have quickly hidden their weighing scales and vacated their selling premises as soon as we discovered the defective one. We are calling on the local government to address this matter. We must protect consumers against this deceptive sales act especially in these hard times," stressed Maglaya.