2018 budget, tax reform bill approval seen next week

The House of Representatives and the Senate are expected to finally approve the proposed P3.8-trillion 2018 budget and the tax reform bill next week.

Speaker Pantaleon Alvarez said yesterday members of Congress should be able to pass the two important bills before they adjourn for their monthlong Christmas vacation on Wednesday.

He expressed confidence that the bicameral conference committee reconciling the two chambers’ divergent versions of the measures would agree on a common version in time for the adjournment.

Alvarez added the panels have been able to resolve several contentious issues.

Davao City Rep. Karlo Nograles, House appropriations committee chairman, and his Senate counterpart, Loren Legarda, head the conference panel on the proposed budget for next year.

Quirino Rep. Dakila Cua, ways and means committee chairman, and his Senate counterpart, Sonny Angara, chair the panel on the tax reform bill euphemistically labeled Tax Reform for Acceleration and Inclusion (TRAIN) as the proposal seeks to fund the country’s infrastructure projects to spur development.

Among other levies, TRAIN would impose a P6 tax on diesel, kerosene, cooking gas and bunker fuel for electricity over three years starting Jan. 1, 2018.

The tax is expected to result in higher consumer prices, transport fares and electricity cost.

TRAIN would also give taxpayers some tax relief in the form of reduced income tax rates.

However, the overall net impact of the proposed law is that taxpay- ers would pay an additional P140 billion a year.

In the budget conference, the House and Senate panels have agreed on a P4-billion reduction in the budget of the Department of Public Works and Highways (DPWH).

The Senate had approved the recommendation of Sen. Panfilo Lacson to cut the DPWH outlay by at least P50 billion, but the House contingent opposed this.

Lacson said the reductions were funds for infrastructure projects with unresolved right-of-way issues which, if not resolved, would result in the money not being used and returned to the treasury.

However, he said many senators and congressmen complained to him because their projects were affected.

“I thought all along that there were no more pork barrel funds,” he said sarcastically.