MANILA – The progressive Makabayan bloc is convinced that rebranding the second package of the Tax Reform for Acceleration and Inclusion (TRAIN) Law will not change the measure’s “inflationary” effects.
The lawmakers made the remark on Wednesday after the House committee on ways and means approved the proposed tax reform law, renamed as Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO).
At a press conference, Bayan Muna partylist representative Carlos Zarate slammed the House panel for approving the measure in the wake of the announcement that the country’s inflation rate further rose to 5.7 percent.
“Kung kailan pataas nang pataas ang ating inflation, ipinasa nila ang TRAIN 2 at nag-rebranding sila dahil mabaho na nga ang TRAIN, ginawa nilang TRABAHO. Pero mabaho pa rin at ito ay pasanin pa rin ng mamamayan,” Zarate said.
The approved version of the measure seeks to gradually lower corporate income tax rates to 20 percent from 30 percent, or by 2 percent annually starting 2021.
The bill carried the Department of Finance proposal to rationalize and consolidate fiscal incentives under a single omnibus incentive code.
But Zarate reiterated that only big corporations will benefit from the said measure.
“Dahil binaba mo ang tax rate ng mga korporasyon, talagang merong mawawala sa kaban ng gobyerno. At kukulangin na naman ang koleksyon ng gobyerno,” he said.
“Saan niya babawiin ito? Babawiin niya ito sa dagdag na buwis na naman sa mamamayan,” he added.
The consolidation of fiscal incentives, Zarate also said, will not be implemented right away.
“Talagang masayang-masaya dito ang mga kapitalista. Bumaba na yung tax rate nila, tuluy-tuloy pa rin ang pakikinabang nila sa mga tax incentives,” he said.
ACT Teachers partylist representative Antonio Tinio echoed Zarate’s sentiments.
“Mabaho yung TRABAHO Law na pinasa kahapon ng Kongreso. Sa tingin nila mapagtatakpan nila yung problema na dulot ng TRAIN kaya binigyan nila ng bagong pangalan, pero lalo pang magpapatindi sa inflation ang TRAIN 2 na ito,” he said.
With this measure, Tinio said that billions of revenue will be left in the pockets of big corporations instead to the government coffers.
“Ito ay malamang magtutulak sa mataas na presyo, in other words, inflation,” he added.
Speaker Gloria Macapagal-Arroyo had said that the measure is a priority under her leadership at the House. (GMA News)
