TRAIN 2 stands in the Senate despite Duterte push

Sen. Sonny Angara

Although President Rodrigo Duterte has certified "urgent" the second package of tax reform law in his speech on the state of the nation (Sona), the Senate is "unsure" of its own. he would soon pass another "inflationist" "Some senators (senators) are hesitant because of [its possible effect] on jobs, and the possibility that [some companies] could be transferred to Vietnam and Thailand," said Sen. Sonny Angara. "Angara said," No one in the Senate wants to sponsor him, "said Majority Leader Juan Miguel Zubiri on Wednesday, adding that Senators were worried about the inflationary effects of the second package of tax reform for the acceleration and inclusion (TRAIN) Despite the assurances given by finance officials that it would not affect employees and small businesses.

"There are provisions in TRAIN 2 that also seem to to be inflationary, "Angara told reporters.

The highest in Southeast Asia

" We did not even have a single hearing [on the proposal] … There are also uncertainty in the House "The Chair of the Senate Committee on Ways and Means said that the second tax package, known as TRAIN 2, would reduce corporate income tax. the country, which remains the highest in Southeast Asia.

But the package will also include the streamlining of tax benefits, which could make the Philippines less attractive to some companies, especially exporting companies.

TRAIN 2, Angara, who sponsored the now controversial TRAIN law in the Senate, has not given a categorical answer.

"We will see, I want to support the government's efforts to improve our tax system, but we do not want it to have a bad effect on the country," he said.

Angara added: "Next year is an election year.I think a lot of the work must be accomplished [year] .Do not forget that the Duterte administration is still in power in the next four years, so there is a lot of time left to spend [this]. "

The senator also raised the possibility of adopting the tax package piecemeal, adding that he should not be adopted "as is." He added that the second tax package came on the heels of the TRAIN law, which critics blamed for the 5.2 percent inflation rate – the five years ago Finance officials responded that the law played a very minor role in raising prices for basic goods and services.

Franchise Tax on the Telephone Companies

The TRAIN Act lowered the income tax rate for taxpayers , but the increase in consumption taxes on goods, such as fuel, sugary drinks and cigarettes, which affected employees to the minimum wage who do not pay income tax first place.

first, and yet the [subsidies] that would have helped to bear the costs has not yet been given, "Angara said.

Some provisions in TRAIN 2 could also be inflationary, said the senator, citing the franchise tax on the telephone companies

As part of the House version of the tax package, the same taxes imposed on radio and television companies will be applied, inter alia, to companies

The telephone companies will have to pay a 3% franchise tax on gas and water services, and a 2% franchise tax on gross revenues from the company.

For the moment, Angara said that the Senate

In his Sona, Mr. Duterte said that he "hopes to sign package 2 before the end of the year"

Duterte added: "I urge Congress to take seriously (tax packages) and to transmit them successively, because there is no chance that we can keep our promises without a fair tax system. "- WITH A REPORT BY DJ YAP [19659025] Do not miss the latest news and information.