Leftist lawmakers back TRAIN suspension

Leftist House members yesterday supported the call of several economists for the administration and Congress to suspend the Tax Reform for Acceleration and Inclusion (TRAIN) program.

Bayan Muna Rep. Carlos Zarate said the first part of the program or TRAIN 1 imposed new and higher taxes on oil products, sugarsweetened beverages and cigarettes.

“Those taxes have been driving inflation to record levels since January, when TRAIN 1 took effect. The runaway TRAIN is wrecking the economy. It should be junked,” he said.

He said President Duterte should tell his congressional allies to repeal TRAIN 1 or suspend its implementation.

Anakpawis Rep. Ariel Casilao said the Duterte administration should “decisively stop rising inflation by repealing Republic Act No. 10963 (TRAIN 1) and increasing the minimum daily wage to P750.”

He lamented that the President and his economic managers are still on “denial stage that continuing price shocks are brought about by TRAIN.”

He said the pre-TRAIN price of rice was P43 to P48 per kilo. It’s now mostly P50 to P55 and P70 per kilo in some areas of Mindanao, he said.

“Food inflation of 8.5 percent will make millions of Filipinos poorer, since 60 to 70 percent of their household expenses goes to food,” Casilao said.

He said Duterte “had the gall to persecute opposition politicians while oblivious of the people’s misery.”

Several economists called for the suspension of TRAIN in an interview on “The Chiefs” show on Cignal TV’s

One News Wednesday. One of them, Emmanuel Leyco, said the administration and its allies in Congress should not only suspend TRAIN 1 but junk TRAIN 2 as well.

“I hope they consider the impact of these recent inflation numbers,” he said.

They have to consider how people “are being affected by inflation and how it will be exacerbated if we adopt TRAIN 2… they have to think of the poor who are already going hungry without TRAIN 2,” he said.

While TRAIN 1 imposed new and higher taxes on oil products, sugar-sweetened beverages and tobacco, the second part of the program seeks to reduce corporate income tax from 30 percent to 20 percent and take away tax incentives from many businesses.

Critics have said TRAIN 2 would result in revenue and job losses.