The Department of Finance is currently active in its campaign to make more Filipinos understand what House Bill 5636, or the Tax Reform for Acceleration and Inclusion Act (TRAIN), is all about. The Duterte administration wants more people to understand what the proposed bill contains so that more people will support it. Congress approved it on May 31, and it is slated to be discussed in the Senate when the new session opens on the 24th of this month.
The tax-reform bill aims to lower the personal income taxes being paid by the ordinary citizen, decrease donor and estate taxes, and adjust excise, fuel and automobile taxes. Also included in the bill is the widening of the value-added tax base and additional taxes for sugary beverages.
More than 80 percent of current taxpayers won’t have to pay income tax under the new tax bill, according to its proponents. Those who are currently paying 32 percent will see that figure go down to 25 percent. Those who make at least P5 million yearly will be shelling out 35 percent of their money for taxes. Because of these changes, it is believed that 99 percent of Filipino taxpayers will benefit from the proposed tax-reform bill. This includes the working middle-class, like teachers, employees, call-center agents, policemen, soldiers and those working in the medical industry. With the new tax system, purchasing power is also said to increase because the amount that people will save in taxes may be added to money they can actually spend.
The government says income from taxes will be used for infrastructure projects, education, health and social-welfare programs. There will be support for public-utility vehicles drivers for four years, and cash transfers for poor families. As more infrastructure projects will be undertaken, productivity will increase and more jobs will be created. Better delivery of basic services will also follow, like education, health, housing and
social welfare.
Finance Undersecretary Karl Kendrick T. Chua said the proposed bill is pro-Filipino and pro-poor, and will greatly support the administration’s 10-point socioeconomic agenda. It will fund the government’s “Dutertenomics” strategy, which is expected to change the economic landscape in the country and transform the Philippines into a high middle-income country by 2022. Poverty incidence is also expected to decrease by 14 percent around this time.
If the Senate approves TRAIN, I believe more people will be pleased. There will be some who might have to sacrifice a bit more for the benefit of the economy. Definitely, everyone is hoping that all the tax money goes to projects and programs that will benefit those who are in need.
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ON June 11 the PCSO Silver Cup Race was held at the Manila Jockey Club Inc. in Carmona, Cavite. The horses that finished the race were: Radio Active (with jockey JA Guce) placed first; Bite My Dust (with jockey KB Abobo) landed on second place; third prize went to Kanlaon (with jockey VR Dilema); and in the fourth place was Son Also Rises (with jockey JB Hernandez). Congratulations to all the winners!