SolGen warns of ‘suffering’ if tax reform law is stopped

News | Panay News

MANILA – The government’s top lawyer urged the Supreme Court to dismiss all petitions challenging the constitutionality of the tax reform law.

Lawmakers and a consumer advocacy group filed petitions for certiorari that seek to stop the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Solicitor General Jose Calida, in a 74-page comment, urged the high court to throw these out.

“The government and the public in general will greatly suffer if the TRAIN Law is declared invalid,” he warned.

“The government stands to lose an estimated P146.6 billion in 2018 from the lowering and restructuring of personal income tax,” he said.

“This loss will only be offset by the revenue generating features of the TRAIN Law, which is expected to provide P89.9 billion in incremental revenues for 2018 and P786 billion within the first five years.”

On the petitioners’ claim that the TRAIN Law is “anti-poor,” Calida said the law aims “to eradicate poverty and reduce inequality for the general welfare of the people.”

The TRAIN Law provides for lower personal income tax rates and increased excise taxes on petroleum products, automobiles, sugar-sweetened beverages, and tobacco.

It is “not arbitrary, oppressive and confiscatory, and does not result in the deprivation of life, liberty or property without due process of law,” said Calida.

The law “does not violate the equal protection clause since it impacts mostly middle to higher-income Filipinos.”

Moreover, Calida said, low-income residents will be “shielded” from the inflationary impact of the law through the government’s “unconditional cash transfer program and other mitigating measures.”

“Thus, the TRAIN Law is progressive and equitable,” he said./PN

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