TRAIN law may be reviewed due to rising prices

The House of Representatives is open to reviewing the controversial Tax Reform for Acceleration and Inclusion (TRAIN) law in view of rising prices of products and services.

“We are open to that. I think a review is needed because what is involved here is the health of the economy,” Quirino Rep. Dakila Cua, who chairs the committee on ways and means, told reporters yesterday.

He said he was confident that President Duterte’s economic managers and the Bangko Sentral ng Pilipinas are doing what they can to stabilize prices.

“So, let’s wait and see. In the meantime, let’s review the situation and the law. If there’s merit to the proposal to suspend it, why not?” he said.

Cua, however, said he would not agree to the proposed suspension of the law while the House is reviewing it.

“No, I think we should be reviewing first, and not be drastic about suspending it. Anytime we suspend that, it will have economic implications. The national coffers would be affected. So it would be very irresponsible to do that,” he added.

Cua pointed out that those who are seeking the suspension or repeal of the so-called tax reform law should present “compelling reasons” to convince lawmakers to support their proposal.

There are two pending TRAIN law-related proposals in the House. Opposition congressmen are seeking the suspension of the law while it is being reviewed, while the Makabayan bloc of seven party-list representatives wants it repealed.

“The law is detrimental to majority of the Filipino people. What is needed now is not just a mere review or suspension of TRAIN. The situation necessitates its repeal,” Bayan Muna party-list Rep. Carlos Zarate, the bloc’s de facto leader, said.

He said his group is seeking the repeal of the law’s “anti-poor and anti-people provisions so as to lessen the burden of consumers, because they are the ones bearing the brunt of the TRAIN.”

“They don’t even feel the supposed 6.8 percent growth of the economy,” Zarate said, referring to the rate of economic expansion in the first quarter reported by administration officials.

President Duterte’s economic managers have frowned upon proposals in both the House and the Senate to amend the TRAIN law.

Finance Secretary Carlos Dominguez III has said the suspension or repeal of the statute would deprive the government of funds for the increased salaries of soldiers and policemen, and the free education program in state universities and colleges.

“We need not wait anymore for even more adverse effects, more price shocks, affecting especially the poor, before Congress should decisively act. Hundreds of workers of Coca-Cola were laid off, prices of petroleum products have been going up,” Zarate said.

He said rice, which is supposed to be value-added tax-exempt, became more expensive by at least P2 per kilo, while prices of meat products like beef, chicken and pork rose by P10 to P20 per kilo.

He said based on official government data, inflation or the increase in consumer prices went up to 4.7 percent last month from 4.3 percent in March and 3.8 percent in February.

The actual rates breached all government projections, he stressed.

Zarate, however, lamented that administration officials like Dominguez continue to insist that the TRAIN law has minimal impact on consumer prices.