Senate hopes to retain tax reform core despite possible modifications

THE Senate will convene next week to discuss the Tax Reform for Acceleration and Inclusion Bill (TRAIN), with Senate President Aquilino L. Pimentel III saying he hopes to preserve the substance of the legislation despite possible changes.

Mr. Pimentel acknowledged that the bill may not survive in its original form, noting the changes imposed by the House, but added TRAIN will pass “at least in spirit.”

Mr. Pimentel said he views TRAIN’s core feature to be a relief from high taxes. “That’s the most important of all because that is a campaign promise,” he said, adding that he supports passing a measure that will compensate for foregone revenue with new taxes.

He said it is important to maintain the government’s credit rating, cash resources, and fiscal credibility.

Mr. Pimentel added however that tax collection eff iciency must be enhanced, noting that the projected P270 billion in new revenue, as opposed to P140 billion in new revenue, is not entirely the result of new taxes but also greater collection eff iciency.

Mr. Pimentel said the greatest area of concern appears to be the excise tax on fuel products, which he calls a “sensitive” issue, noting that from the original P6 per liter, the Department of Finance is now open to collecting P3 in the first year, P2 in the second and P1 in the third.

“The experts need to show us simulations proving that these measures are not inflationary,” he said.

The government hopes to implement tax reform by 2018. —