By Mario Casayuran

The proposed Tax Reform for Acceleration and Inclusion (TRAIN) 2 bill seeks to impose graduated tax on schools and hospitals operated by religious groups.

Queried by Senate reporters after attending a briefing for senators on the proposed 2018 P3.757-trillion national budget, Department of Finance (DOF) Undersecretary Karl Chua said current laws state that schools operated by religious groups do not pay taxes to the national government although they charge high fees from students.

The Senate still has to debate the pros and cons of this proposal in committee hearings and floor debate before coming up with a consolidated bill or reject it altogether.

Senate President Vicente C. Sotto III has already filed a Senate version of the TRAIN 2 bill.

Chua stressed that the objective of TRAIN2 was to reform the tax system by ensuring that Filipino students entering schools are given quality education.

More so with hospitals where patients are cared for, he added.

Chua said there are currently 20,000 registered schools in the country, 10,000 of which are being operated by religious groups which do not pay taxes, while 6,000 other schools only pay 10 percent of what they are supposed to pay in taxes.

He stressed that the objective of TRAIN 2 was to implement a policy that all schools in the country should pay taxes.

Chua said the DOF favored the issuance of vouchers directly to qualified students, instead of government helping the schools.

DOF officials said that it was also about time that government lowered corporate income tax (CIT).