“While the TRAIN law provides higher income tax exemption for those earning below P250,000 ($4,818) annually, it actually levies a higher tax burden to the poor majority with the removal of some VAT (value added tax) exemptions and introduction of new excise taxes on petroleum products and sugar-sweetened beverages.”
MANILA – The Makabayan bloc led by Bayan Muna Rep. Carlos Zarate filed House Bill 7653, an act repealing certain sections of the Tax Reform for Acceleration and Inclusion Law on Thursday, May 10. This, after reports on how the spike in prices brought by TRAIN has affected the Filipino people.
The explanatory note of the bill said that the impact of TRAIN law among the poor could never be denied.
“While the TRAIN law provides higher income tax exemption for those earning below P250,000 ($4,818) annually, it actually levies a higher tax burden to the poor majority with the removal of some VAT (value added tax) exemptions and introduction of new excise taxes on petroleum products and sugar-sweetened beverages,” the bill read.
Zarate said the TRAIN law needs to be repealed not reviewed or suspended.
“House Bill 7653 will repeal the anti-poor and anti-people provisions of the TRAIN law so as to lessen the burden of consumers, because they are the ones bearing the brunt of the TRAIN law. They don’t even feel the supposed 6.8 percent growth of the Philippine economy,” said Zarate.
The bill proposed the following:
– Restores the old National Internal Revenue Code (NIRC) levels of excise tax on petroleum products and oil, specifically zero tax for liquefied petroleum gas (LPG), diesel, kerosene and bunker oil (Section 5);
– Repeals the whole section on excise taxes on sugar sweetened beverages (SSBs) (Section 7);
– Repeals the whole section on distribution of incremental income from TRAIN (70 percent build, build, build and 30 percent on social measures) (Section 7);
– Restores the personal exemption worth P50,000 and P25,000 / dependent (Section 2);
– Restores the Value Added Tax (VAT) exemption of sales of electricity by generation companies, transmission by any entity, and distribution companies including electric cooperatives (Section 2);
– Restores the VAT exemption of low cost housing (Section 3);
– Restores the 3 percent tax exemption of cooperatives, self-employed and professionals with gross receipts of P2,000,000 and below (Section 4);
“This bill should not be seen as a hindrance by the administration and taken as a means to assuage the suffering of our poor countrymen,” said Zarate.