Congressmen protested the Senate “insertions” as unconstitutional. The Philippine Chamber of Commerce and Industry then opposed the coal-tax hike, a Senate addition that was also bucked days later by Speaker Pantaleon D. Alvarez and Trade Secretary Ramon M. Lopez.
None of these mattered, however, after the bicameral conference committee approved on Monday the Tax Reform for Acceleration and Inclusion (TRAIN) Act, with senators walking away grinning, as their version prevailed in the weeklong deliberations by representatives of the two chambers.
House Deputy Speaker Romero S. Quimbo of Marikina said lawmakers adopted the Senate’s proposal on the coal tax, but at reduced rates of P50 per metric ton for the first year, P100 for the second and P150 for the third.
The Senate earlier passed “a 3,000-percent increase in coal taxes” to be collected in three tranches until 2020, which means the current P10 excise tax will be raised to P100 in 2018, P200 in 2019 and P300 by 2010.
“This is a big step toward a cleaner environment,” Quimbo said.
Earlier, Alvarez vowed to block Senate insertions of the additional taxes, particularly on coal, as they run counter to the constitutional mandate that all revenue measures must originate exclusively from the House of Representatives.
Article VI, Section 24 of the Philippine Constitution, which provides that “all appropriation, revenue or tariff bills, bills authorizing increase of the public debt, bills of local application and private bills shall originate exclusively in the House of Representatives, but the Senate may propose or concur with amendments.”
Moreover, the bicameral committee has agreed to exempt workers earning P250,000 from paying personal-income tax while raising the 13th month pay’s tax-exempt ceiling to P90,000, from the current P82,000.
It also agreed on the tax rate to be imposed on sugar-sweetened beverages, P6 tax per liter for juices and energy drinks and P12 tax per liter for beverages with high-fructose corn syrup. The TRAIN Act is targeting to raise P130 billion in revenues to finance the Duterte administration’s ambitious infrastructure program.
The bicameral committee report is now being prepared to be transmitted to the both houses for ratification and submitted to the Palace for President Duterte’s signature.
The congressional committee should approve the consolidated version of the tax-reform bill this week to ensure its passage before Congress goes on Christmas break on December 13. The government is eyeing to implement the TRAIN by January 1, 2018.
According to Majority Leader Rodolfo C. Fariñas Sr. of Ilocos Norte, the bill will be ratified before the Congress goes on Christmas break on Wednesday.
Fariñas said both chambers of Congress have until December 13 to ratify the bill.
Senate to work overtime
Senate President Aquilino L. Pimentel III confirmed on Monday that senators are scheduled to ratify the final version of the TRAIN bill and the 2018 national budget bill after a joint session with the House of Representatives on the proposed extension of martial law in Mindanao.
“I appealed to my fellow senators that, even after the special session, we go back
here for our legislative session,” Pimentel said. “No matter the time. There is no choice.”
Pimentel added there may even be no need to convene a special session, as lawmakers are prepared to work overtime if needed. “Besides, if we need to work overtime, we will do two functions on Wednesday so there will be no more special session.”
He admitted, however, that “if there is unfinished agenda, then we will have a
special session”.
Pimentel added that, if the schedule is followed, the lawmakers would hold session only “until Wednesday.”
He voiced confidence that a joint session to tackle the proposed extension of martial law in Mindanao could be done in one day. “Yes. We are hoping it could be done half-day, more or less…that is the ideal,” said Pimentel, adding this was why they scheduled a briefing for the lawmakers.”
He explained that “we need a briefing to be informed of the factual basis for martial- law extension. What is the factual basis? What does the military know? How come they recommended the extension? We will listen first.”
As for the TRAIN bill and the 2018 budget bill, Pimentel said they are looking to pass the annual budget bill first.
If the TRAIN bill is not approved before Congress adjourns for Christmas recess later this week, its proposed effectivity on January 1, 2018 will be affected.
“Hopefully, the new effectivity is January 1, but we will definitely have a new tax law. It is just the effectivity; if we don’t do it now, its timetable as projected by the Department of Finance and the Department of Budget and Management will be adversely affected,” he said.
Sen. Juan Edgardo M. Angara, chairman of the Ways and Means Committee that conducted hearings on the TRAIN bill, noted its enactment into law will mean “bigger tax exemptions for hardworking workers.”
“After two decades, we have finally reformed personal income-tax law to give more take- home pay to our hardworking workers and their families,” the senator said.
Angara noted that the new P250,000 tax- exemption rate for all Filipino employees will take effect next year, in addition to bigger exemptions for bonuses and 13th month pay. Here are the highlights of the consolidated bill:
■ Mining—double the rates;
■ Auto excise—4 percent for up to P600,000; 10 percent for over P600,000 to P1 million; 20 percent for over P1 million up to P4 million; and 50 percent for over P4 million;
■ Tobacco tax—P32.50 effective January 1, 2018 to June 30, 2018; P35 effective July 1, 2018 to December 31, 2019; P37.50 (24 months), P40 (24 months), 4-percent annual increase after;
■ Housing—status quo for three years, then Senate version after;
■ Oil excise—gasoline P7, Av gas P4, asphalts P8, kerosene P3, diesel P2.50, LPG P1, naptha P7, Ref. fuel P8, bunker fuel P2.50, lubricating oil P8, paraffin wax P8, petcoke P2.50, all petroleum products used as input, feedstock, raw materials for petrochem and refining or as replacement fuel are exempt;
■ Cosmetic procedures—5 percent rate;
■ Coal—P50-P100-P150.
2 comments
Cong. Quimbo ang Sen. Angara, youre the Man!
Great deals of important information and also great article also.