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The government might increase taxes if the proposal of the Department of Labor and Employment to provide a P200 monthly subsidy to minimum wage earners would push through, Malacanang said on Thursday.

In a press briefing, Presidential Spokesperson Harry Roque said DOLE Secretary Silvestre Bello III's proposal needs further discussion and examination.

"We are increasing the tax because we have to spend on the projects. But if we're going to give another benefit, it means, where are we going to get the P200? So it means the tax will again rise," he said.

Roque said the government has to balance everything.

In consultation with the Department of Social Welfare and Development and of Finance, Bello said they were planning to provide a subsidy of P200 per month to some 4.1 million minimum wage earners or P2,400 in 12 months to help them cope with the increasing prices of goods.

He said the subsidy could be until 2020 and the amount could be raised in the succeeding years.

Roque said Bello's proposal should be discussed by the economic team.

"We will await the recommendation on the proposal," he said.

Some quarters have been blaming the implementation starting last January of the Tax Reform for Acceleration and Inclusion (TRAIN) law for the increasing inflation. Celerina Monte/DMS