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TRAIN law beneficial to PH: Pernia

By Leslie Gatpolintan July 8, 2018, 11:51 am

MANILA -- The proposed suspension of the tax reform law could hamper the implementation of the
administration’s massive infrastructure and social programs that would benefit millions of Filipinos, the
country’s chief economic planner said Friday.

Socioeconomic Planning Secretary Ernesto Pernia said the implementation of the first package of the Tax
Reform for Acceleration and Inclusion (TRAIN) law “has been very beneficial” for the country.

Pernia said the law has improved fiscal space for the government to fund the “Build, Build, Build”
program and various social programs, including the conditional cash transfer (CCT), unconditional cash
transfer (UCT), free tuition in state universities and colleges (SUCs), free irrigation for farmers, and
‘Pantawid Pasada’ cash grants.

“We are spending a lot so people should know that it’s not a good idea to just suspend or abolish the
TRAIN law because many of these spendings on social programs like CCT, UCT, SUC free tuition cannot
be implemented. And of course, the Build, Build, Build program will be hampered,” he said in an
interview in his office.

The Duterte administration intends to spend PHP9 trillion on its massive infrastructure program which is
expected to generate about 1.1 million new jobs every year.

The National Economic and Development Authority (NEDA) also estimated the “Build, Build, Build”
program contributes as much as PHP31.2 trillion to the economy over the next five years.

Implemented last January 1, TRAIN is the first package of the Comprehensive Tax Reform Program
(CTRP) which reduces personal income taxes and adjusts excise taxes on fuel and automobiles.

“We hope the TRAIN 2 will be passed before the end of the year because that’s also a critical package of
CTRP. The CTRP is a very sound program, well studied (law), and it is the outcome of so many
consultations,” Pernia added.

The second package of the tax reform program seeks to lower corporate income tax rates and rationalize
fiscal investment incentives.

Some lawmakers have reiterated their call for the suspension of the TRAIN law amid increasing inflation
rate, while others suggested postponing the collection of additional excise tax under the law.

The country’s inflation rate rose to 5.2 percent in June 2018 due to faster price increases in major
commodities like food, fuel and transport.

Such increases were caused by various factors, including global oil prices, peso depreciation and rice
prices.
“While we recognize the public sentiment on rising prices, let us remind ourselves that the TRAIN law
increased the take-home pay of 99 percent of income taxpayers. And this should help in coping with the
rising prices of goods,” Pernia said. (PNA)

https://www.pna.gov.ph/articles/1040756

INDUSTRY NEWS

DOE on TRAIN: Higher fuel cost a sacrifice for benefit of country.

Do you agree? by Drei Laurel | Jan 7, 2019

PHOTO: DREI LAUREL

Having a hard time because of higher fuel prices brought about by the Tax Reform for Acceleration and
Inclusion (TRAIN) law? Don’t worry, the Department of Energy (DOE) says, because it’s a sacrifice for
the benefit of the Philippines.

Long drives are definitely worth it, and here’s why

“We might have to spend a little more, but that little sacrifice would translate to huge benefits for the
country,” said DOE secretary Alfonso Cusi in a statement released earlier today.

“Let us remember that the revenues from TRAIN will fund important programs, such as free education,
increase in the salaries of our public school teachers, as well as crucial infrastructures under the ‘Build,
Build, Build’ program,” he added, emphasizing that the law will provide the Filipino people with more
jobs and livelihood.

Cusi also promised the public that the DOE is ensuring the implementation of the TRAIN law’s second
tranche will be fair and within the bounds of the law, saying the agency is being vigilant.

“We will ensure the fuel stocks for 2018 will be utilized first and sold at the pre-implementation prices,”
Cusi stressed. The DOE has already reached out to several fuel stations, asking them to explain why they
implemented price hikes as early as January 2, 2019.

Under the second tranche of the TRAIN law, diesel and gasoline will see an additional excise tax of P2,
while household LPG will see a P1 excise tax increase. The official DOE statement adds that “there will
also be an additional 12% value added tax, which totals to P2.24 for both diesel and gasoline, and P1.12
for LPG.”

Cusi pointed out that the impact of the TRAIN law’s second tranche is smaller, thanks to the recently
implemented fuel price rollbacks. He emphasized, too, that forecasts do not indicate prices will skyrocket
as they did in October last year.

“If the trend continues, we do not expect it to have as much impact on fuel prices as it did last year.
Besides, we can cushion the effect of any new oil price increases by becoming more efficient in our use of
energy,” he said.

https ://www.topgear.com.ph/news/industry-news/doe-train-costs-a962-20190107
Concept Central: All News That Matters

TRAIN law benefits everyone, including poor — Roque

January 3, 2018 4:41 PM17849

THE tax reform law, which is now being implemented, will benefit everyone, including the poor,
Presidential Spokesperson Harry Roque, Jr. said on Wednesday.

Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, will reduce the
burden of Filipinos from paying income taxes while giving the poor cash grants, according to Roque.

“Of course you know that January 1 is the implementation of the TRAIN reform. Let me stress though
that the implementation of TRAIN relates to the fact that 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 likewise tax-exempt,” Roque said in a press
briefing in Malacañang.

Likewise, Roque said that a portion of TRAIN revenues will be used to help fund the government’s
conditional cash transfer (CCT) program.

“We have also begun implementing the P200 per month … as a measure of mitigating the effects of
TRAIN, at least to the poorest of the poor in our communities,” he said.

The cash grant will be distributed between January to July 2018, said Roque.

On the concern that the TRAIN’s revenue-enhancing provisions would lead to higher prices, Roque
clarified that the TRAIN proceeds will go back to the people in terms of infrastructure, which is expected
to stimulate the economy.

“Well, someone has to pay for Build, Build, Build that will produce positive effects for everyone and of
course, it is done through taxes,” he underscored, referring to the massive infrastructure program of the
Duterte administration.

“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,” he explained.

Roque also said the Department of Trade and Industry is doing its mandate to monitor price movements in
the market. rw: wjg

http://conceptnewscentral.com/index.php/2018/01/03/train-law-benefits-everyone-including-poor-roque/

Positive effect of TRAIN law not immediate - BTr

By Jasper Marie O. Rucat

Published On September 7, 2018

Bureau of Treasury (BTr) Region 10 Officer in Charge - Regional Director Bienvenido V. Esmeralda Jr.
explained during the Talakayan sa PIA on August 30 that the passage of TRAIN law does not assure
immediate positive effect but medium to long term.

The immediate effect would be the increase in prices.

From the amount generated from this law, 70 percent will go to the Build Build Build program which is a
capital asset. “And you cannot feel today the benefit, this capital asset: bridges, roads, etc.,” he said.

“We cannot just collect today and spend tomorrow and we don’t see any infrastructure improvement,” he
added.

Meanwhile, 30 percent of the collected funds from TRAIN go to social services.

BTr is the custodian of government funds.

Esmeralda said the collection of Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) will go
to the treasury to fund the republic.

If the government needs money, then we can provide, he said.

For 2018, the national budget is something like P3.4 trillion but the estimated revenue is P2.8 trillion.

He explained that if the P3.4 trillion will be spent, compared to the P2.7 trillion collection, the treasurer
has to find somewhere to fund the balance or the deficit.

"We always borrow," he said.

In June 2018, the national government debt reached P7.1 trillion. “Bisan pa sa budget programming, duna
gyud deficit pirmi (Despite the budget programming, there is always deficit),” he said.

"For TRAIN, the target inflation was between 2 to 4 percent, but for the month of July, we hit 5.7 percent
that is over and above the inflation rate target," said Esmeralda.

"When price increases," he said, "we cannot just blame TRAIN law because there are other factors."

Among them are rise of fuel price in the world market and depreciation of the Philippine peso.
(JMOR/PIA10)

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Business Mirror
Other side of TRAIN: DOF bares SME benefit from tax-reform law

By Rea Cu - July 18, 201815

Last updated on July 18th, 2018 at 09:30 pm

The Department of Finance (DOF) on Wednesday reported that small and medium enterprises (SMEs)
benefited from tax breaks amounting to no less than P44.158 billion for the first six months of 2018 under
the Tax Reform for Acceleration and Inclusion (TRAIN) law, as they are now covered by a higher value-
added tax (VAT) threshold, and can now choose from two options to be able to pay lower income taxes.

In a report by the Bureau of Internal Revenue (BIR) to Finance Secretary Carlos G. Dominguez III at a
recent executive committee meeting of the DOF, VAT collections mostly from its regional offices fell, but
collections from the percentage tax and income tax increased from January to June this year.

Finance officials said that the figures indicate that that many SMEs have reaped benefits from raising the
VAT threshold from P1.9 million to P3 million under the TRAIN law.

The finance chief explained that increases in the percentage- and income-tax collections indicate that
SMEs and self-employed individuals that have not exceeded the VAT threshold are now opting to pay
either the 8-percent income tax on gross sales or receipts and other non-operating income or the
percentage tax and the graduated income-tax rates under the tax-reform measure.

The BIR reported that total collections nationwide from the percentage tax rose to P44.158 billion during
the first six months of the year, higher by 0.93 percent than the its goal of P43.744 billion and the 2017
collection of P38.241 billion for the same period.

Based on preliminary data from the BIR, income tax collections rose to P500.585 billion for the first half
of the year, higher by 2.2 percent compared to the 2017 level of P489.456 billion as well as the BIR’s goal
of P450.375 billion.

Total VAT collections for January to June this year reached P179.951 billion, expanding by 0.84 percent
from the P178.435 billion recorded in 2017, but fell short of the BIR’s goal of P222.419 billion for the
period.

Meanwhile, VAT collections amounted to P63.217 billion in the BIR’s regional offices from January to
June this year, lower by 13.1 percent, from last year’s P72.813 billion.

Percentage-tax collections for the same period in the regions, however, rose by 48.9 percent to P18.079
billion, from P12.130 billion in 2017. The figure for the six-month period for percentage tax collections
also exceeded the BIR’s goal of P14.803 billion for the same period.

Income-tax collections in the regions also rose by 0.42 percent to P207.332 billion, from P206.454 billion
in the same period in 2017. This also surpassed the BIR’s goal of P198.618 billion for the first half of the
year. With Manuel T. Cayon

https://businessmirror.com.ph/2018/07/18/other-side-of-train-dof-bares-sme-benefit-from-tax-reform-law/