Senate closes door on Cha-cha for lack of time

1,200 companies to pull out if TRAIN 2 is passed, Drilon warns

Senate Minority Leader Franklin Drilon warned that Philippine direct investments and employment would be in jeopardy if the second package of the Tax Reform for Acceleration and Inclusion (TRAIN) law pushes through.

According to Drilon, at least 1,200 companies are poised to leave the country while a good number of investors have expressed apprehension about investing in the Philippines if fiscal incentives are removed under the government’s proposed second package of tax reforms.

The minority chief made the revelation during the interpellation of the budget of the Department of Trade and Industry (DTI) late Tuesday.

The Senate is still not keen on taking up proposals to revise the 1987 Constitution even as the House of Representatives comes close to approving a draft charter for a federal form of government.

Senate President Vicente Sotto III said they cannot anymore accommodate the Lower Chamber's Resolution of Both Houses No. 15 since the Upper Chamber is already pressed for time in approving the 13.757-trillion proposed national budget for 2019.

The resolution, passed by congressmen on second reading Tuesday, seeks to convene the Senate and House of Representatives into a constituent assembly to revise the 1987 Constitution and approve a proposed federal charter.

The measure is expected to hurdle the Lower House on Monday.

"Chances of the federal charter making it in the Senate at this point are very doubtful," Sotto told reporters in a text message on Wednesday.

The Senate chief said the House should have transmitted the General Appropriation Bill (GAB) to the Senate earlier so they could take up other controversial measures such as the proposed shift to a federal form of government.

In a separate message to the Manila Bulletin, Sotto said the House of Representatives cannot complain about the Senate's inaction on federalism in choosing to prioritize the approval of the national budget.

Leyte Rep. Vicente Veloso, chairman of the House Committee on Constitutional Amendments, said that the approval of RBH No. 15 will give the House a reason to seek the Supreme Court (SC) should the Senate sit on the measure.