A lawmaker on Monday asked the leadership of the House of Representatives to first address several issues concerning the initial implementation of the Tax Reform for Acceleration and Inclusion 1 before considering the passage of TRAIN 2.
Party-list Rep. Carlos Isagani T. Zarate of Bayan Muna issued the statement as members of the House Committee on Ways and Means, the Department of Finance (DOF) and other stakeholders will meet on Tuesday to start discussing several bills, which aim to reduce corporate-income tax and modernize fiscal incentives. These are part of TRAIN 2, or the second package of the Comprehensive Tax Reform Program of the Duterte administration.
Currently, there are four versions of the proposed TRAIN 2 at the lower chamber: House Bill 7458 filed by House Committee on Ways and Means Chairman Dakila Carlo E. Cua of the Second District of Quirino and Deputy Speaker Raneo E. Abu ofthe Lone District of Batangas; HB 7214 filed by Reps. Horacio P. Suansing Jr. of the Second District of Sultan Kudarat and Estrellita B. Suansing of the First District of Nueva Ecija; HB 7364 filed by Party-list Reps. Rodel M. Batocabe of Ako Bicol and Deputy Speaker Sharon S. Garin of Aambis-OWA; and HB 0231 filed by Rep. Eric D. Singson of the Second District of Ilocos Sur.
The TRAIN 2 aims to lower corporate-income tax to 25 percent, from 30 percent, and to harmonize fiscal incentives.
According to the DOF, TRAIN 2 will help the government fund its “Build, Build, Build” infrastructure program, further improve the country’s sovereign credit ratings, ensure fiscal stability and attract investments.
“The administration should discontinue its push for TRAIN 2 because of several problems and soaring prices arising from the TRAIN 1. They should stop burdening the people,” Zarate said.
In the first few months of the implementation of TRAIN 1, he noted that the prices of basic goods and services, including petroleum products, went up.
Citing the “detrimental effects” of the new tax-reform law, Zarate said the lower chamber should act first on several bills and resolutions that seek to review and repeal TRAIN 1.
During the hearing of the Congressional Oversight Committee on the comprehensive tax-reform program law, Cua warned the DOF that it will be difficult for the lower chamber to pass another tax- reform law being pushed by the Duterte administration if the social benefits included in the initial phase of TRAIN 1 won’t be fully implemented.
Cua is referring to implementation of the Pantawid Pasada and other mitigating measures.
Under the TRAIN law, the government shall implement the Pantawid Pasada Program or a social assistance project for commuters and public transport, and the jeepney- modernization program to ease the impact of the oil excise tax increases on commuters and the land-transport sector.
Besides the Pantawid Pasada, the TRAIN provides for additional unconditional-cash transfers to low-income earners amounting to P2,400 for 2018 and P 3,600 for 2019 and 2020. The DOF said P4.3 billion has been released in the first quarter, which forms part of the total of P25.7 billion allocated for UCTs this year.
The law also provides for a Pantawid Kuryente to help small power consumers in missionary electrification areas.