Train 2 faces rough sailing in Senate

The second tax reform package being pushed by Malacañang may face rough sailing in the Senate due to the continued rise in the prices of goods after the Tax Reform for Acceleration and Inclusion (TRAIN) law was implemented, Sen. Cynthia Villar said.

“With people now conscious of prices, as a result of the (TRAIN) implementation, coinciding also with increase in prices of fuel, we may find difficulty in (passing) TRAIN 2,” Villar, chair of the Senate committee on agriculture and food, said during the 21st Charter anniversary of Kabankalan City, Negros Occidental last Saturday.

Villar said her sentiments are shared by majority of the senators. Instead of TRAIN 2 that will cover businesses, Villar said amendments to incentives may be better.

TRAIN 2 primarily removes many fiscal and tax incentives for various industries, especially those located in economic zones. At the same time, TRAIN 2 seeks to reduce corporate income tax from 30 percent to 25 percent. Villar said majority of the Senate members want to review incentives for various industries but will make sure that changes will not affect those with big employment as they might close their businesses.

TRAIN critics said the law is largely to blame for the rise in the cost of products and services.

Senate President Vicente Sotto III earlier expressed his intention to sponsor TRAIN 2 in the Senate, if it will not lead to new or higher taxes.

TRAIN 1 was about new and higher taxes on oil products, among other levies, and lower income tax for millions of individual taxpayers.

Speaker Gloria Macapagal-Arroyo had said TRAIN 2 will be a priority under her leadership.