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Palace allays fears on TRAIN 2

By Genalyn Kabiling

Some lawmakers are hesitant to support the second package of the administration’s tax reform due to concerns it might hurt their chances in the 2019 elections, a Palace official said yesterday.

Presidential spokesman Harry Roque, however, assured the lawmakers there was nothing to worry about Tax Reform for Acceleration and Inclusion (TRAIN) package 2, which seeks to reduce corporate income tax, and not impose new taxes.

“It’s an election year so natatakot siyempre kung sinuman ang tatakbo sa eleksyon lalo na ang mga re-eleksyonista on passing another tax bill,” Roque said in a Palace press briefing.

“Pero uuulitin ko. Kakaiba ang tax bill na ito hindi ito nagpapataw ng bagong buwis. Ito’y magpapataw ng mas mababang buwis para hindi naman tayo pinakamataas na corporate tax sa Asya so walang dapat ikatakot,” he said.

Not a single senator was reportedly willing to sponsor TRAIN 2 amid the concerns over the inflationary impact of the first TRAIN package.

TRAIN law reduced personal income tax rates but imposed higher taxes on fuel, cars, and sugar-sweetened beverages.