Diokno on stopping TRAIN: “Can’t change rules midway”
Budget Secretary Benjamin Diokno again opposed calls to suspend the implementation of the tax reform law, which has been blamed for the recent uptick in commodity prices.
"We cannot be suspending the rules in the middle of the game," Diokno said during a breakfast forum in Pasig City on Wednesday.
"You cannot make adjustments midway. It took us a while before the TRAIN was passed... and it wouldn't be smart to reconsider at this time," he added.
The Tax Reform for Acceleration and Inclusion (TRAIN) law reduced personal income tax rates at the same time raised excise tax on petroleum products and automobile and imposed levy on sugar-sweetened beverages.
The rising prices of petroleum products has prompted calls for the suspension of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which imposed an excise tax of P2.50 per liter on diesel and raised the levy on gasoline to P7 from P4.35 per liter.
The excise tax rate on diesel and gasoline will hike by P6 per liter and P10 per liter come 2020.
Economic managers expect that the first package of the TRAIN law will contribute a net amount of around P90 billion in fiscal year 2018, part of which will fund the government's infrastructure projects as well as social mitigating measures to offset the impact of the anticipated increase in commodity prices.
"We will spend P8 to P9 trillion for infrastructure. We're promising you superior, world-class infrastructure so do you want us to stop? At the same time you complain about traffic congestion?" Diokno said.
"Do you want us to stop giving money for free tuition of college students? Do you want to stop giving money for K to 12 etc.?," he added.
The Budget chief emphasized that advantages and disadvantages of stopping the tax reform program in the middle of the game should be weighed carefully.
Diokno said the TRAIN law has provision on social mitigating measures such as the unconditional cash transfer to be given to the poorest 10 million households.
Around 10 million poor households are the targeted recipients of the unconditional cash grants amounting to P200 a month or a total of P2,400 this year. It will be increased to P300 a month or a total of P3,600 a year in 2019 and 2020.
The Budget chief, however, expressed dismay over the pace of the rollout of the unconditional cash transfer since the Department of Social Welfare and Development is having a hard time completing its list of beneficiaries.
"Maybe, the change in leadership in the DSWD has something to do with this," Diokno said.