Mixed reactions to calls to suspend TRAIN

Some small enterprise owners agreed with some members of the Senate who called for the suspension and review of the Tax Reform Acceleration and Inclusion (TRAIN) Law. Others didn’t.

“If that law is suspended, I would support that 100 percent,” said Stephanie Lahoylahoy, who owns a small restaurant.

She said that as a small business owner, TRAIN is a burden to her since the high prices of goods in the market have greatly affected sales.

She added that if TRAIN will be suspended, she expects that sales would increase because more consumers would then afford products.

However, Charity Juarez, an owner of sari-sari store, said she doesn’t expect a suspension can help. “Prices did not just increase because of the TRAIN law. There is inflation, and it is global,” said Juarez.

Some leaders of the business community in Cebu also expressed their opinion on the issue, opposing the suspension of the law.

“I am not in favor of the suspension of TRAIN 1 because that might affect our credit rating and funding of the infrastructure projects under the Build, Build, Build program,” said Antonio Chiu, Cebu Chamber of Com- merce and Industry (CCCI) president.

He added that there is also a provision under TRAIN that the increase in excise tax on fuel can be suspended if global prices reach a certain level and that is intended to protect the consumers.

Mandaue Chamber of Commerce and Industry (MCCI) past president Glenn Soco also expressed his opposition to the suspension, saying it would affect everybody.

Both Chiu and Soco said that a review might be done, but they said there is no need to stop its implementation for now.

Chiu added that the increase in inflation is not solely due to TRAIN 1 but also many other factors. The tax reform program, he explained, is also intended to make the Philippines more competitive by simplifying the rules and making it fairer to all taxpayers.

The TRAIN law, otherwise known as Republic Act 10963, is the first of potentially five packages of the Comprehensive Tax Reform Program, which aims to correct a number of deficiencies in the tax system. /