Economic managers told to rethink need for reform

Senator JV Ejercito on Friday appealed to the government’s economic managers to rethink the need for a tax reform program, following the record collection of the Bureau of Customs (BOC).

In a press statement, Ejercito said the proposed Tax Reform for Acceleration and Inclusion or TRAIN may not be needed after all.

“I have been calling the government’s economic managers to rethink and review their position on the TRAIN because, as I have said, it’s inflationary and will severely impact on the poor. I am especially worried on food inflation,” Ejercito said.

“With the BIR and the BOC coming up with impressive numbers, I hope they will listen to this proposal now,” he added.

Ejercito was referring to the BOC’s record-high collection of P42 billion in October, as well as the Bureau of Internal Revenue’s (BIR) collection of over P138 billion. He said such numbers are a “strong argument against the TRAIN.”

“This means we can raise revenues even without increasing the taxes or imposing new ones,” Ejercito said.

“If we will only improve our tax and duties collections and also tighten the noose on smugglers through a serious and sustained antismuggling campaign, which we definitely can, we will be able to generate the revenues that we need. So, hindi na natin kailangan pa ang TRAIN,” he added.

The TRAIN, according to Senate ways and means committee chairman Senator Sonny Angara, seeks to rake in revenues of P134 billion.

The proposed first package of the tax reform measure aims to lower income taxes while limiting value-added tax exemptions, adjusting excise taxes on oil and automobiles, and imposing new taxes on sugar-sweetened beverages (SSBs).

Several senators have expressed apprehensions on approving the tax reform proposal with provisions on fuel and sugar-sweetened taxes, saying these will impact the poor sector.

The proposal is still pending for second reading approval at the Senate.