Tax Reform Acceleration and Inclusion

Sen. Bam: Food inflation up to 6.1%, suspend TRAIN now

Senator Bam Aquino warned that the continuing increase in the prices of goods will lead more Filipinos to hunger even as he renewed his call for the suspension of the government’s tax reform program.

Sen. Bam made this pronouncement as he noted that food inflation for June increased to 6.1 percent from 5.7 percent in May, based on data from the Philippine Statistics Authority (PSA).

“Lalong nalulunod sa taas-presyo ang taumbayan dahil sa totoo lang, mas nagmahal talaga ang pagkain nitong nakaraang buwan ayon sa sariling datos ng gobyerno,” said Sen. Bam, who has been consulting with families and communities on pressing issues, like rising prices.

“Sabi ng mga tindera ng isda na nakausap ko, matumal ang bili sa kanila kasi wala nang pera ang mga suki. Instant noodles at sardinas na lang ang mabili,” Sen. Bam added.

Sen. Bam said government data backs up the claim of many Filipinos that prices of goods and services have increased drastically since the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

 “Kung patuloy pong aakyat ang presyo ng pagkain, paano na kakain ng tatlong beses isang araw ang mahihirap nating kababayan?” added Sen. Bam, one of four senators who voted against the ratification of the TRAIN Law.

Sen. Bam said the government should act now and suspend the TRAIN Law so as to alleviate the plight of poor Filipinos, who are already burdened by the government’s tax reform program.

“Gutom po ang dulot nitong TRAIN sa mga mahirap nating kababayan kaya kailangan na talaga isuspinde ito agad,” said Sen. Bam.

Sen. Bam has been pushing for the suspension and rollback of the excise tax on petroleum products under the TRAIN Law to help lower the prices of fuel and goods at the same time.

The senator has submitted a measure seeking to stop and rollback the excise tax on fuel when average inflation rate surpasses the annual inflation target over a three-month period.

Sen. Bam: Pahirap ang TRAIN Law, hindi perpekto

How can you call a law perfect if it burdens the poor?

This was Sen. Bam Aquino’s reaction to Budget Secretary Benjamin Diokno’s pronouncement that the Tax Reform for Acceleration and Inclusion (TRAIN) Law is a perfect law.

“Paano magiging perpekto ang batas na sumasagasa sa mahihirap na Pilipino?” asked Sen. Bam, one of four senators who voted against the ratification of the TRAIN Law.

“Konting malasakit naman po para sa mahihirap,” Sen. Bam stressed, adding that the government should not ignore the suffering of Filipinos, especially the poor, from high prices of goods.

“Huwag naman ninyong maliitin ang paghihirap ng mga kababayan nating nalulunod sa taas presyo,” said Sen. Bam.

“Tinitiyak ko po sa inyo totoong mabigat ang pinapasan ng taumbayan dahil sa taas presyo na dulot ng TRAIN,” the senator added.

Sen. Bam renewed his call to the President to listen to the cry of Filipinos, who are already burdened by the high prices of goods due to the government’s tax reform program.

“Sana lang marinig ng Pangulo ang hinaing ng mga pamilyang pilipinong nalulunod na sa taas presyo,” said Sen. Bam, adding that he expects the Chief Executive to address the issue during his State of the Nation Address (SONA).

Earlier, Sen. Bam said the government should join hands with the legislative in finding ways to solve the problem to alleviate the plight of Filipinos.

As part of his effort to alleviate the suffering of the Filipinos, Sen. Bam has filed a measure seeking to suspend and roll back the excise tax on fuel under the TRAIN Law once average inflation rate surpasses the annual inflation target over a three-month period.

Sen. Bam also is pushing for the full implementation of mitigating measures under the TRAIN Law, such as the unconditional cash transfer program for poor families and the Pantawid Pasada for jeepney operators and drivers.

Sen. Bam: Tama na ang palusot sa taas-presyo, umaksyon para sa mahihirap na Pilipino

Senator Bam Aquino advised the government to squarely face the issues emanating from the Tax Reform for Acceleration and Inclusion (TRAIN) Law, such as high prices of goods, instead of being in a state of denial about it.

“Panahon na para tanggapin ng administrasyon na may malaki tayong problema, na nalulunod ang taumbayan sa taas presyo,” said Sen. Bam, one of four senators who voted against the ratification of the TRAIN Law.

While the government continues its inaction on the matter, Filipinos, especially the poor, continue to bear the brunt of the high prices of goods as they struggle to make ends meet.

“Sa bawat araw na nagdadaan, lumalala ang problema ng taas presyo na nagpapahirap sa pamilyang Pilipino,” said Sen. Bam.

“Hindi po nakakabawas ang mga palusot at paliwanag sa paghihirap ng mga kababayan natin,” he added.

Instead of evading the issue, Sen. Bam said the government should join hands with the legislative in finding ways to solve the problem to alleviate the plight of Filipinos.

“Harapin na po natin ang problema ng taas presyo, pagtulungan nating hanapan ng solusyon para gumaan ang buhay ng taumbayan,” said Sen. Bam, adding that the ideal way is to suspend the TRAIN Law immediately.

“Gawin po natin ito para sa mga kababayan nating pinapahirapan ng tumitinding taas presyo araw-araw,” Sen. Bam emphasized.

For his part, Sen. Bam has filed a measure seeking to suspend and roll back the excise tax on fuel under the TRAIN Law once average inflation rate surpasses the annual inflation target over a three-month period.

Sen. Bam also is pushing for the full implementation of mitigating measures under the TRAIN Law, such as the unconditional cash transfer program for poor families and the Pantawid Pasada for jeepney operators and drivers.

Sen. Bam: Gov’t should be alarmed, protect poor from high inflation rate

Senator Bam Aquino contradicted government’s claim that the 5.2-percent inflation rate in June is not alarming, saying it should be concerned about the suffering of the Filipinos on the high prices of goods due to the Tax Reform for Acceleration and Inclusion (TRAIN) Law.   

“Dapat lang na mabahala ang gobyerno sa matinding taas presyo. Huwag natin ito maliitin dahil pinapahirapan nito ang ating mga kababayan,” said Sen. Bam, in reaction to Malacanang’s statement that the current inflation rate is not something to worry about

“Hanggang nalulunod sa taas presyo ang mga kababayan natin, hindi magiging epektibo ang mga programa kontra-kahirapan,” added Sen. Bam, one of four senators who voted against the ratification of the TRAIN Law.

Sen. Bam hopes that the President will address the issue of the TRAIN Law in his State of the Nation Address (SONA) and focus on anti-poverty measures to help ease the burden of Filipinos, especially the poor.

“Umaasa tayong pagtutuunan ng Pangulo sa kanyang pangalawang SONA ang pagsugpo sa kahirapan para tulungan ang ating mga kababayan na maitawid ang pangangailangan araw-araw at makaahon,” Sen. Bam pointed out.

“Para maging matagumpay ang pagsugpo sa kahirapan, kailangan magsimula sa pagsugpo ng taas presyo sa pamamagitan ng pagsuspinde sa TRAIN,” he added.

Sen. Bam has been pushing for the suspension of the excise tax on petroleum products under the TRAIN Law as it could help lower prices of goods and services. 

The senator has submitted a bill seeking to suspend and roll back the excise tax on fuel under the TRAIN Law once average inflation rate surpasses the annual inflation target over a three-month period. 

In addition, Sen. Bam is pushing for the full implementation of mitigating measures under the TRAIN Law, such as the unconditional cash transfer program for poor families and the Pantawid Pasada for jeepney operators and drivers.

Sen. Bam to admin: Listen to Filipino people, review TRAIN law

Senator Bam Aquino urged the government to listen to the Filipino people in light of the latest Pulse Asia survey showing pay hikes and increase in prices as major concerns of the public.

 “Pakinggan natin ang hinaing ng mga Pilipinong nabibigatan sa mataas na presyo ng bilihin at hindi sapat na kita,” said Sen. Bam, who has visited a number of local communities to hear out their concerns on the rising prices of goods.

The survey conducted by Pulse Asia from March 23 to 28 showed that 50 percent of the respondents mentioned salary increase as the most urgent issue while 45 percent pointed to inflation.

“Sa pagtaas ng presyo ng bilihin, sapat ba ang 200 pesos per month na cash transfer ng gobyerno? Panahon na para suriin ang totoong epekto ng TRAIN law at siguraduhing hindi pinapahirap ng gobyerno ang buhay ng mga Pilipino,” Sen. Bam stressed.

 With this development, Sen. Bam reiterated his call to review Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act as it contributes to the increase in prices of goods and services that burdens Filipinos, especially the poor.

Recently, Sen. Bam filed Senate Resolution No. 704, urging the appropriate Senate Committees to conduct an inquiry on the TRAIN’s inflationary impact and effect on the economy, particularly the P7 and P2.50 excise tax increase on gasoline and diesel, respectively.

Sen. Bam also filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

In his resolution, Sen. Bam said the Department of Finance assured lawmakers that TRAIN’s impact on inflation would not be more than 0.7 percent.

However, latest data from the Philippine Statistics Authority (PSA) showed that the country’s inflation rate for March hit 4.3 percent.

Sen. Bam calls for review of TRAIN amid inflation, rising prices

A senator insisted on evaluating the government tax reform program as he expressed alarm over the latest inflation projections on top of the rising prices of petroleum products and rice in the market.

“Nakakaalarma na para sa mga pamilya ang pagtaas ng presyo ng bilihin. Ngayon, mas mataas pa sa inaasahan ng pamahalaan ang inflation rate,” said Sen. Bam Aquino, referring to several projections that the inflation rate might range from 4.2 percent to 4.8 percent due to higher excise tax. 

 The latest projections were beyond the government’s forecast of between two to four percent, according to Sen. Bam.

“We should evaluate the tax reform law and consider suspending excise taxes given the surge in prices,” added Sen. Bam, who plans to file a resolution to assess the real impact on inflation and economy of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

 “Congress should determine the real and actual impact of TRAIN on the economy and especially on the lives of Filipinos,” said Sen. Bam, adding that the sharp rise in inflation could lead to a higher cost of living and can aggravate poverty. 

 “The continued implementation of TRAIN could lead to greater marginalization and suffering for many Filipino families,” Sen. Bam emphasized.

During the Senate hearings on TRAIN, Sen. Bam said the Department of Finance (DOF) insisted that the tax reform program’s inflationary impact would not be higher than 0.7 percent, meaning inflation should not go higher than 3.6 percent in 2018.

“We have to review the implementation of excise taxes as it was passed by Congress based on wrong information,” said Sen. Bam. 

Earlier, Sen. Bam voted to reject the TRAIN Law during its ratification. 

Sen. Bam also filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

Sen. Bam fears TRAIN is killing jobs, livelihood opportunities

Apart from rising prices of goods and services, a senator is dismayed that the Tax Reform Acceleration and Inclusion (TRAIN) Law is leading to less jobs for Filipinos, according to Sen. Bam Aquino.

“We are now feeling the effects of TRAIN, not just on prices of goods, but also on jobs of thousands of Filipinos. The government is duty bound to cushion the blows of heavy taxes on jobs and employment,” said Sen. Bam.

“Natatakot ako para sa kabuhayan ng pamilyang Pilipino. Kailangan solusyunan ito ASAP,” Sen. Bam added.

Recently, Coca-Cola FEMSA Philippines Inc. announced that it will trim down its workforce in light of the passage of the TRAIN Law that imposes P6 per liter excise tax on beverages using caloric and non-caloric sweeteners and P12 per liter on beverages using high-fructose corn syrup. Reports have it that 600 workers from various units of Coca-Cola will be laid off.

Also, Sen. Bam said that several BPOs are relocating, aborting expansion, or re-shoring workers due to the effects of the TRAIN Law.

To safeguard livelihood for Filipinos working in the business process outsourcing (BPO) industry, Sen. Bam pushed for the retention of a special tax rate for regional operating headquarters and regional headquarters (ROHQs/RHQs) during the TRAIN’s period of amendments. However, the provision was vetoed by Malacanang, much to the dismay of the BPO sector.

The veto will lead to an increase in cost of doing business, which will affect the status of 5,000 workers and will prevent other BPOs from setting up shop to provide more jobs for Filipinos.

 “These RHQs invested in the Philippines because of these tax incentives, which were suddenly removed by our government. Bakit pa sila mamumuhunan dito at paano pa sila magtitiwala sa gobyerno,” Sen. Bam questioned.

Among those who aborted expansion plans upon the removal of the preferential tax rate is a large global outsourcing hub for technology services. The expansion would have provided up to 400 fresh job to Filipinos.

Sen. Bam also mentioned that a big ROHQ will close its operations in the Philippines this coming year. 

Instead of focusing solely on revenue-generation, Sen. Bam said the government must work with the private sector to boost job creation and strengthening job security, especially with rising prices due to their new tax policies.

 “Importanteng ipatupad na ang cash transfer, pero pansamantalang solusyon lang ito. Livelihood, jobs, sapat na kita para sa bawat pamilyang Pilipino ang nararapat na prayoridad ng pamahalaan,” said Sen. Bam.

Sen. Bam is the former chairman of the Senate Committee on Trade, Commerce and Entrepreneurship and passed several measures to provide livelihood by supporting small, local businesses in the country. He is also the principal sponsor of the free college law passed last year.

Sen. Bam voted no to the ratification of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

Sen. Bam repeats call for immediate financial assistance for Filipinos amid rapid rise in prices

Alarmed by the rapid increase in prices of goods and services due to the Tax Reform Acceleration and Inclusion (TRAIN) Law, Sen. Bam Aquino renewed his push for the immediate implementation of financial assistance to poor Filipinos. 

“This is the reason I keep pushing for the immediate implementation of financial assistance. Alam na namin ang kahihinatnan ng tax reform ng nagbotohan, kaya ako kumontra sa TRAIN,” said Sen. Bam.

 Sen. Bam’s pronouncement came after the country’s inflation rate reached four percent, the highest in four years, due to the effects of the TRAIN Law. 

Republic Act No. 10963 mandates financial assistance to 10 million poor Filipinos to counter the expected increase in prices of goods. In 2018, they will receive P200 monthly followed by a P300 monthly cash subsidy in 2019 and 2010.   

 During the measure’s period of amendments in the Senate, Sen. Bam pushed for the immediate implementation of the financial assistance program to help poor Filipinos absorb the expected increase in the prices of goods and services. However, Sen. Bam’s proposal was not accepted.  

 “The government is failing the Filipino people, especially the impoverished. We must implement a sufficient financial assistance program immediately to cushion the blow of TRAIN and the price increases,” Sen. Bam said.   

 Recently, Sen. Bam filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services. 

 Sen. Bam is also calling on the National Economic Development Authority (NEDA) to check if household incomes are enough to absorb these rising costs. 

“Gusto rin natin alamin kung sapat na ang 200 pesos kada buwan na cash transfer, lalo na ngayong tumataas na rin ang presyo ng kuryente at bigas,” said Sen. Bam.   

Sen. Bam is the former chairman of the Senate Committee on Trade, Commerce and Entrepreneurship and passed several measures to provide livelihood by supporting small, local businesses in the country. He is also the principal sponsor of the free college law passed last year.  

Sen. Bam voted no to the ratification of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

Sen. Bam calls for Senate probe on slow cash transfer program

A senator has filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer under Tax Reform Acceleration and Inclusion (TRAIN), which was enacted into law on December 19, 2017.  

Sen. Bam Aquino wants to ensure that the cash assistance for 10 million poor Filipino families under the TRAIN Law is sufficient to cover the increase in prices of goods and other services.  

“Siguraduhin natin na makakarating nga ang financial assistance sa mga pamilyang nangangailangan. Bantayan natin ang proseso at suriin natin kung sapat na ang 200 pesos kada buwan,” said Sen. Bam.  

 “The government must prioritize the poor and ensure that its policies benefit them rather than impose even more financial burdens,” Sen. Bam added.  

 Republic Act No. 10963 mandates financial assistance to 10 million poor Filipinos to counter the expected increase in prices of goods. In 2018, they will receive P200 monthly followed by a P300 monthly cash subsidy in 2019 and 2010.  

 However, the government said it cannot implement the cash transfer program at the same time as the tax reform and expected price increases due to lack of proper infrastructure.  

The government intends to use the Department of Social Welfare and Development’s (DSWD) system for the Pantawid Pamilya Pilipino Program (4Ps) to distribute funds to the existing 1.8 million beneficiaries with cash cards by January 31, 2018. But the remaining 2.6 million recipients without cards would have to wait.  

Sen. Bam also said that the cash transfer for the additional 5.6 million households is still in limbo with no actual date of release set.  

“The failure of the government to implement an effective financial assistance program in time for the projected price increases will burden Filipino families,” stressed Sen. Bam.  

 During the measure’s period of amendments in the Senate, Sen. Bam pushed for the immediate implementation of the financial assistance program to help poor Filipinos absorb the expected increase in the prices of goods and services.   

However, Sen. Bam’s proposal was not accepted, prompting the senator to vote against its ratification.  

“Without a cash transfer program in place, poor Filipinos will bear the brunt of the increase in prices of goods and services due to the fuel taxes and sweetened beverage tax. Without the necessary safeguards for the poor, I cannot support this measure,” Sen. Bam emphasized.

Sen. Bam Aquino’s Explanation of No-Vote for TRAIN Ratification

First of all, Mr. President, let me just say that my no vote at the ratification is by no means an indication of the leadership and the diligence of our Chairman. Our Chairman worked very hard for this bill, and I believe he really did his best to come up with the best version that he could, with the circumstances given to him.

However, Mr. President, if I I could explain my vote, the DOF knows that there was really one major provision or one major aspect of this bill that was important to this representation. At yun, Mr. President, yung epekto ng batas na ito sa napakaraming mahihirap sa ating bansa.

Totoo po, Mr. President, merong 6 million Filipinos ang matutulungan ng batas na ito. 6 million Filipinos, in fairness, Mr. President, and will congratulate this portion of the bill, will go to the larger take-home pay. However, Mr. President, in the records of the Department of Finance, in their deliberations, in their presentations to the individual senators, lumalabas po talaga na dahil sa pagtaas ng bilihin, we’re looking at the bottom 40% of the Filipino people who will carry the brunt of the tax reform because of the increase in prices.

Now, Mr. President, a lot of us have raised this issue. At yung na-mention po ng DOF na tulong sa ating mga kababayan ang unconditional cash transfer. In short, Mr. President, yung pang-balanse sa napakaraming pamilyang Pilipinong naghihirap dahil sa pagtaas ng presyo ng bilihin, at yung pagbibigay ng 200, or- ngayon po 200 pero initially in the Senate version 300 pesos per month na tulong, financial assistance to the bottom, roughly 10 million families to help them with the increase in prices because of the tax reform. Mr. President, with that assertion, marami po sa atin, napanatag ang kalooban.

However, Mr. President, lumabas po doon sa ating interpolation, at lumabas po doon sa ating pananaliksik ng DOF at ng iba pang mga ahensya, na hindi po kayang i-implement ang programang iyon na kasabay sa pagtaas ng presyo ng ating bilihin.

And Mr. President, yun po siguro yung isang bagay na para sa akin, hindi ko pwedeng suportahan ang batas na ito kung hindi maisasabay  ang tulong na pinansyal sa ating mga kababayan doon sa pagtaas ng taxes ng napakaraming produkto sa ating bansa. And I hope, Mr. President, this no-vote will spur our agencies to work faster, and this is, of course, DOF, DSWD, and other concerned agencies, na sana po, hindi gaya ng sabi nila, na hindi kayang isabay ang programa doon po sa pagtaas ng presyo ng mga bilihin. Sana po mahanapan pa po nila ng paraan, na sa madaling panahon, masabay po nila yung programang tulong na pinansyal sa mga kababayan natin doon po sa pagtaas ng taxes sa napakaraming presyo, sa napakaraming bilihin sa ating bansa. And because of that, Mr. President, I, unfortunately, cannot support this measure. Thank you, Mr. President.

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