Tax Reform for Acceleration and Inclusion

Sen. Bam renews call to review TRAIN as families struggle with rising prices

After a series of consultations with urban poor communities, Sen. Bam Aquino once again stressed the need to review the government’s tax reform program, saying families are struggling with the considerable jump in prices of goods and services. 

 “Marami nang dumadaing at naaalarma sa mataas na presyo ng bilihin na dulot tax reform program ng pamahalaan,” said Sen. Bam, alluding to Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

“Karamihan sa mga nakausap namin, nagrereklamo na Dati piso-piso lang ang taas, ngayon ang laki na. Ang laki na ng nabawas sa nabibili nating grocery para sa ating pamilya,” said Sen. Bam.

While Sen. Bam acknowledged that the TRAIN has increased the take-home pay of ordinary workers, for some, the additional pay is not enough to cover the rise in prices of basic goods in the market.

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.

 When Congress approved the inclusion of increased excise taxes in the TRAIN Law, the Department of Finance assured lawmakers that its 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, beyond the government’s projection of two to four percent.

“Ngayong lumampas na ang inflation sa pagtaya ng pamahalaan, marapat lang na muli nating pag-aralan ang pagpapataw ng excise tax sa produktong petrolyo,” said Sen. Bam.

In addition, 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 to gov’t: Where is financial assistance for rising prices?

With effects of the Tax Reform for Acceleration and Inclusion (TRAIN) Act now being felt by the public coupled with the rise in the price of rice and lack of affordable NFA rice in the market, Sen. Bam Aquino urged the government to immediately implement the cash transfer program for poor Filipinos.

“Tumataas na ang presyo ng mga bilihin dahil sa tax reform, na sinabayan pa ng pagkawala ng NFA Rice sa merkado. Nasaan na ang financial assistance para sa mga mahihirap na pamilyang Pilipino?” said Sen. Bam.

 Sen. Bam made the pronouncement amid the increase in prices of basic goods due to TRAIN and the sudden rise in prices of rice in the market due to lack of supply of NFA Rice.

The Philippine Statistics Authority (PSA) also announced on Tuesday that the country’s inflation rate in February was at 4.5 percent, the fastest in over three years.

 “Masyado nang mabigat ang pasaning dala ng ating mga kababayan dahil sa pagtaas ng presyo ng bilihin. Panahon na upang madaliin ng pamahalaan ang paglabas ng tulong para sa sampung milyong mahihirap nating kababayan,” said Sen. Bam.

 Sen. Bam was referring to the financial assistance mandated by Republic Act No. 10963 or TRAIN Act 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, prompting him to reject the ratification of the measure.

 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.

 In his resolution, Sen. Bam also called 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 warns public: Brace for increase in prices in 2018

Senator Bam Aquino informed the public to brace for the increase in prices of basic commodities in 2018 due to the Tax Reform for Acceleration and Inclusion (TRAIN)  that was enacted into law recently by the government.
 
“We won’t be surprised by the increase in prices in 2018. Ito ang dahilan kung bakit kumontra tayo sa pagsasabatas ng TRAIN dahil masasagasaan nito ang mga kababayan nating mahihirap,” said Sen. Bam.
 
Sen. Bam made the reaction after the Industrial Group of Zamboanga warned that prices of sardines will increase starting next year due to the excise tax imposed on petroleum products.
 
“Ito’y isa lang sa inaasahan nating pagtaas sa presyo ng bilhin na ang papasan ay ang mahihirap nating kababayan,” Sen. Bam said.
 
Sen. Bam rejected the TRAIN’s approval due to the inability of government to implement the financial assistance program in time for the increase in prices due to provisions on excise tax on fuel and sweetened beverage tax.
 
The Department of Finance (DOF) proposed a cash transfer program with a P200 monthly financial assistance on the first year and P300 monthly financial assistance for the second and third year to help cover the increase in prices of basic goods.
 
During the period of amendments, Sen. Bam pushed for the immediate implementation of the cash transfer program to help poor Filipinos absorb the expected increase in the prices of goods and services.  However, Sen. Bam’s proposal was not accepted by the DOF.
 
“In the end, poor Filipinos will bear the brunt of this tax reform program as it will increase the prices of basic commodities without the immediate cash transfer assistance to the poor” said Sen. Bam.
 
Sen. Bam renewed his call to the government to speed up the implementation of the cash transfer program so poor people won’t be burdened by the increase in prices.
 
Sen. Bam is also hoping that the increase in take-home pay will be enough to offset the increase of prices of goods and services.
 
In addition, the lawmaker urged the government to focus on improving the performance of revenue-generating agencies such as the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR).
 
Data from the Finance Department shows that an additional P726 billion can still be collected by government by addressing inefficiencies and removing loopholes in the BIR.
 
The government can also collect at least P231 billion if the importation gap and smuggling is resolved by BOC.

Sen. Bam: TRAIN to burden millions of Filipino families in 2018

Poor Filipinos will have to deal with higher prices of goods and services without any financial assistance from the government once the tax reform program it is implemented next year, according to Sen. Bam Aquino.
 
“While the government is determined to implement the tax reform program starting next year, it will take months before it rolls out the cash transfer program for poor Filipinos,” said Sen. Bam.
 
The Department of Finance (DOF) proposed a cash transfer program with a P200 monthly financial assistance on the first year and P300 monthly financial assistance for the second and third year to help cover the increase in prices of basic goods.
 
However, the DOF said it cannot immediately implement the cash transfer program and the Tax Reform for Acceleration and Inclusion (TRAIN) at the same time.
 
In the period of amendments, Sen. Bam pushed for the immediate implementation of the cash transfer program to help poor Filipinos absorb the expected increase in the prices of goods and services.  However, Sen. Bam’s proposal was not accepted by the DOF.
 
During its ratification, Sen. Bam rejected the TRAIN’s approval due to the inability of government to implement the financial assistance program in time for the increase in prices due to provisions on excise tax on fuel and sweetened beverage tax.
 
“In the end, poor Filipinos will bear the brunt of this tax reform program as it will increase the prices of basic commodities,” said Sen. Bam, who rejected the measure despite supporting the increase in take home pay for workers.
 
“Sana mahanapan pa ng paraan, na sa madaling panahon, masabay nila ang pinansyal na tulong doon sa pagtaas ng taxes at pagtaas ng presyo ng napakaraming bilihin sa ating bansa,” added Sen. Bam.
 
Instead of passing the burden to poor Filipinos, Sen. Bam said the government should focus on improving the performance of revenue-generating agencies such as the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR).
 
Data from the Finance Department shows that an additional P726 billion can still be collected by government by addressing inefficiencies and removing loopholes in the BIR.
 
The government can also collect at least P231 billion if the importation gap and smuggling is resolved by BOC.

Sen. Bam votes to stop TRAIN from passing Congress

The tax reform package will increase prices for all Filipinos without the necessary safeguards to protect our poor countrymen.
 
This is the reason given by Senator Bam Aquino as he rejected the approval of the Tax Reform for Acceleration and Inclusion or TRAIN.
 
While Sen. Bam is a co-author of the income tax reform bill and is in full support of increasing the take home pay of many Filipino working class, he voted no to the bundled tax reform package due to the provisions on excise tax on fuel and sweetened beverage tax, which will lead to higher prices of goods and services. 
 
“I cannot, in good conscience, vote for the approval of this tax reform package. Hindi ako pabor sa mga probisyon na magdudulot ng pagtaas ng presyo ng bilihin, lalo na dahil ang mga mahihirap na Pilipino ang pinaka tinatamaan dito,” said Sen. Bam on his no-vote for the tax reform package.
 
To cushion the blow to the poor, the Department of Finance proposed a cash transfer program with a P200 monthly financial assistance on the first year and P300 monthly financial assistance for the second and third year to help cover the increase in prices of basic goods.
 
But during the period of amendments in the Senate, Sen. Bam’s proposal requiring the financial assistance mechanism to be in place before taxes are increased was not accepted.
 
“Hindi dapat ipataw ang mga bagong tax na magpapataas ng presyo ng bilihin, tulad ng excise tax on fuel, hangga’t hindi nasisigurado ng gobyerno na magiging maayos ang unconditional cash transfer program,” Sen. Bam stressed.
 
The DOF admitted that they cannot implement the financial support program for poor families in time for the price increases because of TRAIN next year.
 
The senator also lamented that the government is forcing hardworking Filipinos to compensate for our inefficiency in tax collection of both the Bureau of Customs and the Bureau of Internal Revenue (BIR).
 
Based on data from the Finance Department, Sen. Bam said the government can still collect an additional P726 Billion or 6.44% of GDP if we simplify, address inefficiencies and remove loopholes in BIR.
 
The government can still collect at least P231 billion or equivalent of 2% of GDP if the P1.8 Trillion importation gap or smuggling is resolved by BOC.
 
“Para sa pamilyang Pilipino, lalo na para sa mga mahihirap nating kababayan, kontra po ako sa pagtaas ng buwis at pagtaas ng presyo,” Sen. Bam said.
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