THE chairman of the House Committee on Ways and Means last Sunday said the lower chamber is now open to suspending the imposition of certain taxes to address the increasing prices of basic commodities.

Rep. Dakila Carlo E. Cua of the Lone District of Quirino said the committee is studying how the suspension can be done equally and fair to both the government and the people.

“We are open to the suspension of taxes [under the Tax Reform for Acceleration and Inclusion or TRAIN law] if the situation merits it…and if we think that’s the right solution at the moment; and then how do we make it or what are the mechanics if it’s suspended and possibly revived when the conditions are different or better,” Cua said in a radio interview.

“We may [also] carve out the implementation of certain taxes …we can do that through legislation or legislative process,” the lawmaker added.

According to Cua, his committee is also studying the power of the Bureau of Internal Revenue (BIR) to recommend to President Duterte the suspension of the imposition of taxes, particularly the excise taxes, as well as the value-added tax on fuel.

Earlier, the BIR announced that the net gain from the implementation of the new tax law reached P12.5 billion in the first quarter of the year.

Despite this, several lawmakers, citing what they described as the detrimental effects of the new tax-reform law on the people, filed bills and resolutions reviewing and repealing the TRAIN law or at least suspending its implementation.

President Duterte signed into law RA 10963 (TRAIN law) on December 19, 2017, with the objective of creating a simple, fair and more efficient system that will make the rich contribute more to fund the government’s services and programs for the benefit of the poor. The law is also expected to finance the “Build, Build, Build” (BBB) program, which will modernize the country’s infrastructure backbone and is expected to create 1.7 million jobs by 2022.

Oil-price hike

As oil prices are hitting record-highs, Party-List Rep. Gary C. Alejano of Magdalo reiterated the call for the immediate review of Republic Act 10963, or the TRAIN Act.

Alejano has filed House Resolution 1838, calling for a review of TRAIN due to its inflationary impact, with a rate hitting 4.5 percent—exceeding the 4-percent prediction of Duterte’s economic managers.

“Now, the subject of alarm is the series of oil-price hikes and the price of crude oil in the world market approaching the $80 barrel set forth by TRAIN,” Alejano said. “We saw a big-time oil-price hike last week, which is the biggest so far this year so far. It is expected that this would continue with the Department of Energy warning the public of possible hikes in the coming weeks. Given this scenario, it is urgent that we review TRAIN and, if necessary, suspend the implementation of the excise tax,” he added.

While some are now seeing the impact of TRAIN and are also suggesting its suspension, Alejano took a swipe against those who overlooked the implications of TRAIN despite the warnings.

“There were early warnings on the effects of TRAIN, but these were brushed aside, maybe due to assurances that there are mechanisms to cushion the side effects. However, we are seeing that safety nets are still promises while the poor are presently being buttressed by high prices of commodities,” he stressed.

“What must be done now is to address the problems and stop denying that TRAIN contributed to the crisis. If the government will keep on defending TRAIN, it will not be able to see the realities Filipino families are facing now under the Duterte tax plan,” Alejano said.

He, meanwhile, suggested that deliberations on the second package of TRAIN be delayed for the meantime as the review for the first package is yet to be done. “We have yet to assess the impact of the first package. We cannot rush into the second one as this may complicate the present situation. Let us resolve first the existing questions and issues on TRAIN before proceeding with the implementation of the second package,” the Magdalo solon said.

The House Ways and Means panel has already started discussing several bills that will reduce corporate-income tax and rationalize fiscal incentives under TRAIN 2, the second package of Comprehensive Tax Reform Program (CTRP) of the Duterte administration.

TRAIN 2 will reduce corporate income tax from 30 percent to 25 percent, and harmonize fiscal incentives with a view to adopting those that truly encourage needed investments and boost growth and create jobs, while dropping those that are redundant or which go to nonperforming sectors.

Minimum wage

Amid the soaring of prices of basic goods and services, the Makabayan bloc said it will file a bill proposing the P750 national minimum wage.

The bloc is also the author of a bill repealing the TRAIN law.

Party-list Rep. Ariel B. Casilao of Anakpawis, a bloc member, said a P750-national minimum wage is but just, not only to mitigate the impact of anti-people policies, such as the new tax law, but also serves as a basic recognition of Filipino workers’ rights as universally acknowledged.

“The latest compelling basis would be the incessant oil-price hike brought about by the TRAIN and a deregulated oil industry. It was recorded highest in Palawan, an absurd P70 gas per liter; while in Baguio, [it’s] P66 and in the National Capital Region, P62. Automatically with the spike of fuel products, basic goods and services follow suit,” he said.

“While the cost of living rises, no corresponding wage hike is realized, which makes the Filipino workers being sandwiched to having a low purchasing power and impoverished state,” he added.

A national minimum wage is neither a new nor radical proposal as it was prior to the enactment of Wage Rationalization Act during the Aquino administration, he noted.