Zubiri: Train 2 is dead, 17 senators ask Duterte to suspend excise tax on fuels

SENATE Majority Leader Juan Miguel Zubiri said yesterday that as far as this Congress is concerned, the Tax Reform for Acceleration and Inclusion Law 2 (Train Law 2) is dead.

“It won’t be considered until the inflation is controlled,” Zubiri pointed out.

He said that Congress will also have no more time to discuss the proposed law.

Zubiri, who was in Bacolod City yesterday, also revealed that 17 senators have signed a letter addressed to President Rodrigo Duterte to suspend addisome tional excise tax on gasoline and other petroleum products on January 2019 until 2020.

“Under the law, we have a provision that when prices go up from $80 per barrel above for three consecutive months, the President has the power to suspend the implementation of the excise tax on fuel. We cannot suspend all excise taxes on all products. This is only for fuels. Our letter to the President is to implement the provision of the law. It’s been over three months already that the price of fuels is over $80 a barrel so he can now suspend the current or additional excise tax at P2 levy on fuel under Train Law 1. That will be on January 2019 because we will have additional P2 excise tax per liter on fuel. Our request for the President is to suspend the additional P2 per liter for 2019,” Zubiri said.

With Zubiri who signed the letter are Senators Cynthia Villar, Joseph Victor Ejercito, Ralph Recto, Grace Poe, Loren Legarda, Edgardo Angara, Joel Villanueva, Aquilino Pimentel III, Sherwin Gatchalian, Manny Pacquiao, Gregorio Honasan, Francis Escudero, Richard Gordon, Nancy Binay, Panfilo Lacson and Senate President Vicente Sotto III.

“The reason why we are careful about the removal of the taxes is that we have passed several laws like the free Tertiary Education Act that needs about P60 billion. And a lot of Train 1 proceeds will go to free education so it may be irresponsible for us to totally remove the excise taxes on certain products. The government won’t be able to fund free education. Others, we have Free Irrigation Act, feeding program and several government subsidy programs. Our suggestion is prospective for 2019,” Zubiri added.

He said this is to avert inflation rate which is high. “We are trying to avert food inflation that’s why the President is doing his best. Rice prices have already gone down from a high of P60 to P70 per kilo to P38 to P45 per kilo. That has to spread

out which is his priority,” he pointed out.

“When we discussed Train 2 with the President’s presence, in front of the Secretary of Finance together with Budget and Management Secretary, we asked him to concentrate on controlling inflation first and he agreed. But as of this Congress, Train 2 will not be considered until the inflation will be controlled,” Zubiri emphasized.

Negros politics

Zubiri yesterday said he is hands off from politics in Negros Occidental in relation to the 2019 midterm elections.

The senator said that aside from the incumbent officials in Bacolod he is supporting, “I will not be endorsing any local candidates for the provincial and local level in the province.”

“It is very hard to endorse anyone in Negros because almost all of them are either my relatives or my friends,” the senator pointed out.

Zubiri’s family hails from Kabankalan City, Negros Occidental.

“I will not be running until 2022. I want to rest this election and maybe spend more time with my wife and kids on a vacation may be in Israel which is on my bucket list,” he said.

Meanwhile, Zubiri said he is endorsing four senators.

He said he is supporting the re-election bid of Binay, Villar, Ejercito and Juan Edgardo Angara.

“I will be campaigning for my seatmate blocs. They helped a lot during the deliberations of the excise tax on sugar products especially when votes were needed,” he pointed out.

Zubiri said the sugar industry leaders have vowed to help those lawmakers who have helped the industry.

“I need them because who knows in the next few years there will be another Train 2, 3 and 4. There is a plan to tax sugar itself. That will be a blow to the industry. I need allies. We need supporters. We need friends who will help us,” Zubiri said.*