MANILA -- Senators lauded the move of President Rodrigo Duterte on Tuesday to sign into law the PHP3.767-trillion General Appropriations Act (GAA) of 2018 (RA 10963) and the Tax Reform for Acceleration and Inclusion (TRAIN) Act (RA 10964).
"The passage of our national budget every year comes with the hope of achieving real lasting growth for Filipinos, especially the poor and the most vulnerable,” Senator Loren Legarda said in a press statement.
Legarda, chair of the Senate committee on finance, pointed out that the budget is “pro-people and expressed optimism that it would help the government spur growth and sustain progress for Filipinos.
She said the budget prioritizes actual needs of the Filipinos, such as education, healthcare, livelihood, shelter, peace and order, and other support and services to the public.
Senator Joseph Victor Ejercito, for his part, described the 2018 budget as a “budget for the future” since it allocates over PHP40 billion for the Universal Access to Quality Tertiary Education Act which gives Filipinos free college education in state universities and colleges (SUCs).
“This is a budget that lays the foundation for the country’s sustained progress. By investing in the education of our youth and the modernization of our infrastructure the budget secures the future of our country,” Ejercito said
With this law, Ejercito said that poverty would no longer be a barrier to achieving an education that would uplift the lives of Filipinos.
Ejercito also said that at the same time, the 2018 budget also gives a big chunk of resources to the administration’s “Build, Build, Build” infrastructure program.
Senator Juan Edgardo Angara, meanwhile, congratulated Duterte for signing the TRAIN bill into law.
“We congratulate the Duterte administration and both houses of Congress for the passage of this law that would raise workers' take-home pay and jumpstart infrastructure projects in the country which would help improve the lives of every Filipino,” Angara said in a press statement.
Angara, chair of the Senate committee on ways and means, said that with the new tax reform package, there would be a simplified and fairer income tax system.
He, meanwhile, expressed hope that the Congress fulfill its ultimate goal to provide millions of Filipinos relief from their tax burdens that would put more money in their pockets.
The senator also described the tax reform package as the biggest “Christmas gift” that the government could give every Filipino family.
Some senators, however, expressed concern that the poor would still be greatly affected by the tax reform package.
Senate Minority Leader Franklin Drilon urged the administration and Congress to work on the rationalization of fiscal incentives granted to companies to make the tax system more equitable.
Drilon asked the administration to push for the immediate passage of legislation rationalizing the grant of fiscal incentives to business enterprises in the Philippines.
He said the continued inaction on the measure is an affront to Filipinos who would be adversely affected by the TRAIN law.
"The TRAIN burdened the poor with higher taxes on fuel. It's about time that we review the incentives granted to companies to see if such incentives are necessary and continue to serve the purpose for which they are granted,” Drilon said.
Senator Paolo Benigno Aquino IV, for his part, expressed concern that while the government is determined to implement the tax reform program starting next year, it will take months before it rolls out the cash transfer program for poor Filipinos.
Aquino was worried that poor Filipinos would have to deal with higher prices of goods and services without any financial assistance from the government once the tax reform program it is implemented.
He, meanwhile, urged the government to focus on improving the performance of revenue-generating agencies such as the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR).
Citing data from the Department of Finance, Aquino said that an additional PHP726 billion could still be collected by the government by addressing inefficiencies and removing loopholes in the BIR.
He said that government could also collect at least PHP231 billion if the importation gap and smuggling are resolved by BOC. (PNA)
