TRAIN 2 won’t lead to higher consumer prices, Andaya assures public
By JOHN CARLO M. CAHINHINAN
House Majority Floor Leader Rolando Andaya Jr. has clarified the proposed second tax reform package would not lead to inflation surge.
Andaya said contrary to what critics are saying,proposed Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) Bill or TRAIN 2 “will not result to higher prices of commodities.”
“Walang dagdag na buwis dito kaya walang dagdag sa presyo ng bilihin. It is revenue-neutral, meaning it will not result in a gain or loss of funds,” said Andaya.
Andaya explained the proposed legislation which was approved in the House plenary on second reading last Tuesday (September 4), seeks to create jobs by attracting the right set of investments through incentives.
“Ang bibigyan natin ng incentives dito, yun lamang mga negosyo na may maliwanag na kontribusyon sa national development at magbibigay ng trabaho sa mahihirap,” said Andaya.
Andaya stressed that the country’s development goal was biased in favor of investments outside of big cities or urban areas.
“If businesses want longer period of incentives, they have to create more jobs and align with the country’s development goals,” said Andaya.
Under the proposed legislation, the rate of corporate income tax will be reduced gradually from 30 percent to 20 percent between year 2021 and 2029.
Quirino Rep. Dakila Carlo Cua, chair of the House committee on ways and means, said TRAIN 2 will not burden consumers, as it will not impose any additional taxes on consumer product
“Wala siyang bagong buwis. Ibang iba ito. Ang ginagawa ng TRABAHO bill ay scheduling the gradual reduction of our corporate income tax,” said Cua.
He added that the measure will not lead to a mass lay-off despite warning the Philippine Ecozones Association due to the alleged removal of tax incentives for investors since under the new tax incentive schemes, an investor can enjoy a tax holiday of five to seven years depending on the location and merits of their investment.
Cua said the incentive package can also be renewed after it expires especially if the business is expanded or creates more jobs.
Under the proposed measure, the government also seeks to “incentivize certain investments by rewarding additional tax deductions.”