MANILA — Malacañang on Tuesday welcomed the support shown by Senate President Vicente “Tito” Sotto III for the passage of the second package of the Tax Reform for Acceleration and Inclusion (TRAIN).
Sotto, after being briefed by the Department of Finance (DOF) on the benefits of TRAIN 2, said that he was now ready to push for its passage despite Senator Juan Miguel “Migs” Zubiri’s statement that nobody from the Senate is interested to pass the measure.
“Nagagalak naman po kami. At gaya ng sinabi ko kahapon, hindi po nagpapataw ng bagong buwis itong TRAIN 2 (We’re happy to hear that. And as I said yesterday, TRAIN 2 does not levy new taxes),” Presidential Spokesperson Harry Roque said in a Palace briefing.
Roque explained that TRAIN 2 will lower corporate income tax and therefore deliver a more even playing field in business.
“Ito po’y nagbababa ng corporate income tax at inaalis din iyong mga pribilehiyo na hindi pagbabayad ng ilang mga locators sa ilang mga economic zones (This will reduce corporate income tax and remove privileges on not paying some locators in economic zones),” Roque said.
“So nile-level lang po natin ang playing field, pero at the same time binababa po natin ang tax burden ng mga korporasyon para makinabang din iyong mga nagtatrabaho sa mga korporasyon na ito (So we are leveling the playing field but at the same time, we are decreasing the tax burden of corporations so that workers in these corporations can benefit from it as well),” he added.
Roque stressed anew that it was only a matter of correcting the misconception that TRAIN 2 will raise taxes.
“Kinakailangan lang eh i-explain nang mabuti kung ano iyong objective ng TRAIN 2; at tingin ko naman, sasang-ayon ang ating mga mambabatas (All we need to do is explain the objective of TRAIN 2 and I think, our lawmakers will agree),” Roque said.
Last year, President Rodrigo R. Duterte signed the first package of TRAIN to simplify the country’s tax system.
TRAIN 1 exempts those earning an annual taxable income of PHP250,000 and below from paying personal income tax and raised the tax exemption for the 13th month pay and other bonuses to PHP90,000.
At least 30 percent of the incremental revenues to be raised from the TRAIN will be used for social services, targeting 10 million poorest households for 2018.
It will also help fund the administration’s infrastructure projects under the Build, Build, Build program and fund tuition in state universities and colleges.
In his third State of the Nation Address, Duterte asked Congress to pass all the remaining packages of the TRAIN by yearend. (PNA)
