Train faces rough sailing in Senate

BACOLOD CITY – 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 yesterday.

“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 as she attended the 21st Charter anniversary of Kabankalan City, Negros Occidental.

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.

As to the proposed shift to federal government, Villar said the Senate may take it up after the May 19 elections, but not before then.

Sugar prices

Villar also said her committee will hold a hearing this month to look into complaints of food processors and ordinary consumers against the rising prices of sugar.

Sugar Regulatory Administration board member Dino Yulo admitted that they received reports of sugar smuggling due to the increase in sugar prices that have hit P64 to P68 per kilo in supermarkets.

Yulo said these prices are “way above ideal conditions.”

Villar said food processors are requesting that importation of sugar be made direct to users. That is why, Villar said, she wants to hear the side of the sugar stakeholders.

Yulo said the price of sugar remains at P2,000 per bag, which he said appears to be good as of this time. “But we do not want too high a price for the comfort level of everybody,” he added.

What is sad, Yulo said, is that the high prices of sugar in the market is being blamed on producers.

As of this time, he said, it is no longer in the hands of producers.

Yulo noted that before, if there were talks of sugar importation, prices of sugar went down. But “now that we have imported 2,000 metric tons of sugar, which is now in the ports, there is no downward movement in the price of sugar,” he added.

Through the committee hearing, Villar said issues and concerns over the price of sugar will be clarified.

“While the increase of sugar prices may be advantageous to producers in the short term, we do not know the long term effects, and this is something we need to address,” said Yulo, who accompanied Villar in her visit to Kabankalan City.