Progressive lawmakers filed a bill that seeks to remove what they deemed as “regressive” and “anti-poor” provisions of the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The seven-member MAKABAYAN BLOC filed a House Bill 7653; they said it aims to alleviate the “detrimental” effects of TRAIN on the majority of Filipinos, particularly the
House Bill 7653 proposes the following items:
- Restore the old national internal revenue code
- Levels of excise tax on petroleum products and oil
- Specifically zero tax on liquefied petroleum gas, diesel, kerosene and bunker oil
- Repeal the whole section on excise taxes on sugar sweetened beverages
- Repeal the whole section on distribution of incremental income from TRAIN (70 percent Build, Build, Build and 30 percent on social measures)
- Restore the personal exemption of P50,000 and P25,000 per dependent
- Restore the value-added tax (VAT) exemption on sales of electricity by generation companies, transmission by any entity, and distribution companies including electric cooperatives restore the vat exemption on low cost housing as vat exemption even after January 2021.
- Restore the 3-percent tax exemption of cooperatives, self-employed and professionals with gross receipts of P2, 000,000 and below.
Zarate pointed out they have warned early on of price shocks and inflation spikes, but the Department of Finance has downplayed such concerns.
To recall, Senator Sherwin Gatchalian expressed dismay over the administration’s economic manager’s failure to fully inform on the effects of train law after the group revealed in a senate hearing that the inflation rate has breached the 2-4 percent target range.