Palace says someone has to pay for infra programs under TRAIN Act

January 3, 2018

More Filipinos could bear the brunt of higher taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Act as they would also benefit from the positive effect of the infrastructure projects, Malacanang said on Wednesday.

"Well, someone has to pay for Build, Build, Build (infrastructure program) that will produce positive effects for everyone and of course, it is done through taxes," Presidential Spokesperson Harry Roque said in a press briefing.

He explained taxation is one of the three inherent powers of the state and "for as long as it is approved by the people’s representatives, which is Congress, is it acceptable in a democratic state."

The other two inherent powers of the state are police power and eminent domain.

Critics of TRAIN have said only about six million could be exempted from paying taxes under TRAIN Act, but about 80 million would bear the negative effect due to other provisions of the new law.

Under TRAIN Act, those having an annual taxable income of P250,000 and below or at least P21,000 a month are now exempted from personal income tax. Thirteenth month pay and other bonuses amounting to P90,000 are also tax exempt. But additional excise taxes, such as on fuel, will be imposed.

Roque, echoing the statement of the departments of finance and of trade and industry, said imposition of additional excise taxes should not affect current prices of old stocks.

"We have also began implementing the P200 per month unconditional cash transfer amount as a measure of mitigating the effects of TRAIN, at least to the poorest of the poor in our communities," he said.

He said a technical working group has been created for the release of cash transfer between January to July. Celerina Monte/DMS