Senator Bam Aquino is now pushing for the suspension of the Tax Reform for Acceleration and Inclusion or TRAIN Law, The Philippine STAR reports. With inflation levels rising to 4.5 percent, the fastest in five years, it’s sending alarm bells in the legislative that they didn’t fully understand the full implication of TRAIN.
The report quotes Aquino as saying:
“We need a mechanism that can help us suspend this. We should put a halt to it. Let’s not allow prices of goods and services to increase further,” Aquino said in Filipino in an interview.
“I hope I will get the support here in the Senate to push for this measure to give our government flexibility to suspend excise taxes if the prices of goods and services increase too much,” he added.Aquino, who voted against the TRAIN says that the senate’s version of the bill empowers the government to suspension its implementation in the case of high inflation. That clause, however, was struck out in the finalized version of the law.
For his part, Senator Win Gatchalian says that one more quarter is needed to determine whether TRAIN is to be suspended or not.
Responding to the senator’s wish to suspend TRAIN, Budget Secretary Benjamin Diokno said that “suspending the law will do more harm than good.”
Diokno says that the suspension of TRAIN might derail the Duterte Administration’s ambitious infrastructure projects and “could upset the government’s revenue projections and tax collection efforts.”
Source: The Philippine STAR