Analysts cite gains from Train approval

ANALYSTS have welcomed the Senate’s approval of tax reforms sought by the government, noting the expected lift for state revenues and the economy as a whole.

The Senate on Tuesday voted 17-1 to pass its version of the proposed Tax Reform for Acceleration and Inclusion Act (Train), some six months after the House of Representatives approved its own bill.

In a report, Nomura Securities Co. Ltd. said Congress had time to complete the next step of the legislative process, which is to reconcile the Senate and House versions into a measure President Rodrigo Duterte could sign into a law before the year ends.

enacted before year-end and effective at the start of 2018 with a sizeable impact on net revenue,” it said.

For the law to be implemented on January 1, 2018, a bicameral conference committee will have to complete

Nomura said the proposed reforms, which include personal income tax cuts and higher taxes on cars, would government’s ambitious infrastructure program.

The Philippine Development Plan calls for public spending on infrastructure to increase to 7.4 percent of gross domestic product by 2022 from the current level of 5.1 percent.

Nomura said lower income taxes should also boost disposable incomes, further supporting its bullish growth

“We forecast 2017 GDP (gross domestic product) growth of 6.7 percent above-consensus 2018 forecast of 6.8 percent,” it said.

Nomura said the timely enactment

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