Filipino-Chinese group backs Duterte’s TRAIN 2

A Filipino-Chinese business group has expressed their approval of the proposed Package 2 of the Tax Reform for Acceleration and Inclusion or TRAIN law.

The Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. said it is in favor of the proposed TRAIN 2 as the contemplated reduction in corporate income tax rates would improve the competitiveness standing of domestic corporations and allow them to reinvest the tax savings in their business.

"Lower taxes could make businesses pass on the tax savings to consumers by way of lower prices to stay competitive," FFCCII said in a statement Saturday.

FFCCII President Domingo Yap also expressed concern over the high inflation rate and said that members of their group were asked not to unnecessarily raise prices.

"It is unfortunate that TRAIN 1 took some time to legislate and, by the time it was passed into law, coincided with a weaker peso and much higher fuel prices... We reaffirm our support for tax reform to sustain fast and inclusive economic growth for the Philippines," he said.

The passage of TRAIN 2 was among the legislative priorities President Rodrigo Duterte mentioned in his third State of the Nation Address last July, when he urged Congress to pass the bill.

"I hope to sign Package 2 before the year ends. I urge Congress to pass it in a form that satisfies our goals and serves the interests of the many, not just the wealthy few," Duterte said.

Lawmakers, however, expressed apprehension in passing it amid the effects of the first TRAIN package, which exempted those earning an annual taxable income of P250,000 and below from paying the personal income tax and hiked the tax exemption for 13th-month pay and other bonuses to P90,000.

However, the package also imposed new taxes on diesel, liquefied petroleum gas, kerosene and bunker fuel for electricity generation and higher taxes on other oil products.

TRAIN 1 has been blamed for the rising prices of goods. Inflation rose to a fresh five-year high in July at 5.7 percent.

The government, however, points at changes in global oil prices and the weak peso as the reason for the hike in prices of commodities.

Malacañang last month assured that the second package of TRAIN would be different as it would not impose new taxes.

"It will lower the corporate tax so we won't have the highest corporate tax in Asia. TRAIN 2 is different so there is no need to be afraid," presidential spokesman Harry Roque said.