Finance chief says TRAIN to generate P786B in revenues in next 5 years

An estimated P786.4 billion in revenues are expected to be generated by the government in the next five years just from the first package of the tax reform program, the Department of Finance (DOF) said Monday.

“Over the course of five years, we will raise over P786 billion in revenue with this law,” Finance Secretary Carlos Dominguez III said in a press breifing.

This amount, Dominguez said, will fund President Rodrigo Duterte’s priority social and infrastructure programs.

Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN), which lowers income taxes while adjusting excise taxes on oil, coal and automobiles, and imposes new taxes on cosmetic procedures and sugary drinks, among others, took effect this month.

The tax reform program has a total of five packages.

Dominguez said the five packages will generate “more or less” P2 trillion, only around 25 percent of the total P8-trillion budget for the Duterte government’s “Build, Build, Build” program.

“The infrastructure program is about P8 trillion. It is not wise to borrow everything. Just like any business, you have to have your own capital. This is our capital,” Domniguez said.

The DOF earlier said it plans to submit to Congress the second package of the government’s tax reform program this month.

Dominguez also reiterated that the increase in prices of transportation, food, and oil is “manageable,” projecting that it will be less than one percent.

“This is rather manageable especially when compared to the savings from the lower personal income tax,” he said.

On electricity, Dominguez explained that those consuming 100 kilowatt hours per month and paying about P780 will expect a 15-peso increase - P2 from coal tax, and P13 from the excise tax on oil. — ALG/RSJ, GMA News