House approves Train 2 bill

House Bill 8083, or the Tax Reform for Attracting Better and High-Quality Opportunities (Trabaho) bill,

The lawmakers who voted against the bill are Gabriela Rep. Arlene Brosas, ACT Teachers Rep. France Castro, Kabataan Rep. Sarah Elago, Anakpawis Rep. Ariel Casilao and Bayan Muna Rep. Carlos Zarate from the Makabayan bloc; and Albay Rep. Edcel Lagman, Akbayan Rep. Tom Villarin and Magdalo Rep. Gary Alejano from the Magnificent seven bloc.

Joining the dissenters are Marikina Rep. Miro Quimbo, Camarines Sur Rep. Gabriel Bordado Jr., Buhay Party-list Rep. Lito Atienza, Quezon City Rep. Jorge Banal, Quezon City Rep. Christopher "Kit" Belmonte and Northern Samar Rep. Raul Daza.

Ifugao Rep. Teddy Baguilat, Bukidnon Rep. Manuel Zubiri and Negros Oriental Rep. Arnulfo Tevez abstained from the voting.

The Trabaho bill aims to encourage investments by bringing down the corporate income tax rate to 20 percent from the current 30 percent and modernizing the investment tax incentives to improve competitiveness and attain fiscal sustainability.

The Trabaho bill, principally authored by House committee on ways and means chairman Dakila Carlo Cua, Reps. Estrellita Suansing, Arthur Yap, Eric Singson and Bernadette Herrera-Dy, among others, is a product of six committee hearings of the committee on ways and means, one technical working group and numerous meetings with the private sector.

Cua earlier assured the public that the proposal shall not impose additional tax on consumer goods and explained that the lowering of the corporate income tax will provide big relief to the country’s small and medium enterprises.

As as result of the lowering of the corporate income tax, the investors’ money previously spent on tax may now be used to develop their businesses, increase wages, or lower prices of their products, explained Cua.

NO VOTES

Elago, who voted no during the plenary session, appealed to the administration’s economic managers and the lawmakers to rethink the tax reform, adding that majority of the Filipino people have suffered enough from the Train law (Tax Reform for Acceleration and Inclusion).

“To pass another antipoor tax reform would be a great disservice to Filipinos. These are the Filipinos who are left with empty stomachs as the inflation rate skyrockets at present,” she said.

Castro, for her part, said the Trabaho bill is anti-poor, anti-education and anti-local businesses.

She said it will only serve giant corporations and will only impose further tax burdens on the public.

Alejano, for his part, warned that the passage of the Trabaho bill could lead to massive job losses, a claim which was dispelled by Cua.

“Aside from removing tax incentives, companies will be made to contend with the rising cost of utility and cost of production in the country due to the impact of the Train 1 Law. Instead of inviting investors, companies may be forced to relocate resulting to capital flight, massive job losses, and lower production output and exports. Imbes na magkaroon ng trabaho, ito ay magreresulta sa kawalan ng trabaho,” Alejano said. (Keith A. Calayag/SunStar Philippines)