BACOLOD CITY — Negros Occidental Governor Alfredo Marañon Jr. expressed support to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, saying it could redound to better services for the people.
The governor said on Friday the tax reform will enable the government to gather more funds to benefit the ordinary Filipinos.
“If damo kuwarta, ibalik man ina giyapon (If there are more funds, it will return to the people in the form of) improvement of social services, infrastructures and quality education,” he added.
He said higher tax collection will ensure improvement in the delivery of government services.
Marañon also said that a portion of the taxes will go to state universities and colleges, which can benefit the young Filipinos by having quality education.
The governor added that compared to its neighbors in Asia, the Philippines has the lowest tax collection.
The TRAIN Act, signed into law by President Rodrigo Duterte in December, exempts taxpayers with an annual income of PHP250,000 and below from paying personal income tax.
Malacañang had defended the new law from critics, emphasizing that both the rich and the poor would benefit from it.
Presidential spokesperson Harry Roque said the proceeds of TRAIN would be spent for the government’s massive “Build, Build, Build” infrastructure program.
“The ‘Build, Build, Build’ program will not only provide us with better infrastructure, it will also stimulate the economy, create more jobs and therefore create more income for everyone,” Roque added.
He also said that while adjusting excise taxes would raise prices of some commodities, the increase would be minimal and only “temporary.”
Based on estimates by the Department of Finance, Bangko Sentral ng Pilipinas, and National Economic and Development Authority, there would only be around 0.4-0.7 percentage point increase in inflation during the first year of implementation with the impact tapering off over time.(PNA)
