Senate TRAIN version to provide tax relief to 99% of taxpayers – Angara

Senator Juan Edgardo Angara yesterday debunked the Executive department’s claim that the Senate’s version of the tax reform bill would be detrimental to the country’s economic development, saying the Department of Finance (DOF) should be upfront with their revenue es-

timates which he noted keeps on changing.

Angara, chair of the Senate Ways and Means Committee, was reacting to the government’s claim that the Senate’s version of the Tax Reform for Acceleration and Inclusion (TRAIN) would only yield less than 160 billion.

The Senate’s version of the TRAIN bill is now under the period of interpellation. Senate President Aquilino Pimentel III is eyeing the passage of the bill before Congress goes on a break on Oct. 13.

“We are surprised with the DOF’s new revenue estimates. It seems that DOF’s figures are changing. Even the revenue impact of House Bill No. 5636 was reduced to 1119-billion from earlier estimates of 1133.8 billion,” Angara said in a statement.

Angara said the Senate ways and means panel used the figures supplied by the DOF to the committee, the same figures it used in drafting the Senate version.

The senator said the revenue impact “is almost the same as the House version.”

“The committee sought to come up with a version that would provide tax relief to 99 percent of individual taxpayers and, at the same time, meet the revenue target so as not to impair the government’s capability to finance its programs and projects,” the senator stressed.

“We have asked the DOF to provide final and detailed estimates to guide the committee’s work especially on the lifting of VAT (value-added tax) exemptions,” he said.

Angara is wondering why previously discussed exemptions that have little revenue impact before, are now being presented as sizable revenue items.

“This will change the committee’s consideration of certain items going forward. There is still room for compromise on the lifting of other VAT exemptions,” Angara said.

Funding sources

Nevertheless, he said the filing of the committee report is just the first step for the TRAIN bill to proceed in the Senate.

“The committee can adjust accordingly to meet the needed revenue. Our colleagues have already signified, together with their signatures on the report, that they will interpellate and introduce amendments to the bill. The committee is open to amendments that our colleagues will propose to enhance TRAIN’s benefits to the Filipino people,” he said.

Angara, likewise, pointed out that the Senate should not be accused of derailing the government’s 18.4-trillion “Build, Build, Build” massive infrastructure program if the Upper Chamber fails to approve a version closer to the Lower House since not all revenues from TRAIN would be used to fund the government’s ambitious infrastructure program.

This was evident during the interpellation of the bill Monday when Senators Paolo Aquino IV and Senate President Pro Tempore Ralph Recto asked the DOF where the government will source its Build, Build, Build program.

During the plenary deliberation, the DOF intimated that not all revenues from TRAIN would be used to fund the program.

The DOF said 15.6-trillion or 83 percent of the 18.4-trillion program would come from a combination of borrowings from Official Development Assistance (ODA) and Public-Private Partnership (PPP) programs.

“So it cannot be said that the ‘Build, build, build is equated to TRAIN. Because we will be getting the 83 percent of the Build, build, build requirements even without TRAIN,” Sen. Aquino noted.