Palace says positive effects of TRAIN to ‘outweigh’ price hikes

The positive effects of the government's tax reform program will outweigh the price hikes that come with it, Malacañang said Monday.

Communications Secretary Martin Andanar in an interview on dzRH reiterated that the government’s income from the Tax Reform for Acceleration and Inclusion Act (TRAIN) would fund projects under the "Build Build Build" scheme, which is eyed to usher in the country’s golden age of infrastructure. 

“Eh mas lumalaki po iyong pakinabang, mas malaki po—it outweighs—the positive… the pros outweigh vis-à-vis the TRAIN Law pagka’t ‘pag mayroon pong malilikom na mas malaking buwis ang ating gobyerno, ito po ay mapupunta rin sa iba’t ibang investments ng ating gobyerno at iba’t ibang mga proyekto,” he said.

“Ngayon kapag ito po ay napunta sa proyekto, ay maglilikha po ito ng trabaho… So itong TRAIN Law na ito ay maglilikha po ito ng malaking pondo para sa kaban ng bayan, which will go to the projects as I mentioned,” he added.

Andanar also pointed out that the new law includes tax cuts, as a response to those who highlight the price hikes that TRAIN introduces.

“Halimbawa estate tax, mayroon din pong tax na mababawas doon sa mga gamot ng mga… tulad ng diabetes, high blood, etcetera,” he said.

The TRAIN is the first package of the government's Comprehensive Tax Reform Program and aims to raise revenues for the administration's programs.

Upon signing the tax reform package into law last month, Duterte said that TRAIN “addresses long and overdue corrections in our tax laws and introduces a more progressive tax system for the rich and the poor, contribute to give better services to our people.” —ALG, GMA News