SC orders gov’t to comment on petitions vs. TRAIN Law

The Supreme Court (SC) on Tuesday directed the government to respond to the consolidated petitions seeking to invalidate the first package of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).

SC spokesperson Theodore Te said the high court gave the respondents 10 days to submit a comment to the petitions separately filed by party list Representatives Antonio Tinio (ACT Teachers), Carlos Zarate  (Bayan Muna), and Ariel Casilao (Anakpawis), and Laban Konsyumer Inc., through its president former Trade Undersecretary Victor Dimagiba questioning the constitutionality of the Tax Reform for Acceleration and Inclusion Law (Republic Act 10963). 

Among the respondents are President Rodrigo Duterte, Senate President Aquilino Pimentel III, House Speaker Pantaleon Alvarez, Executive Secretary Salvador Medialdea, Finance Secretary Carlos Dominguez III, and Internal Revenue Commissioner Caesar Dulay.

Both petitions argued that the law should be declared unconstitutional since the House of Representatives ratified the bicameral conference committee report — the harmonized version of the TRAIN bill prepared by the House and the Senate — on Dec. 13, 2017 despite the lack of quorum needed to carry the vote and to pass the measure.

The petitions also disputed the government’s claim that the law, which lowers personal income tax rates while raising additional revenues for infrastructure and social services, would be beneficial to the public.

Laban Konsyumer slammed the imposition of excise taxes on petroleum products and coal, saying the law "will further beset those belonging to the low income and poor families whose resources are extremely finite for their subsistence."

"It will not be the companies or private interests who will be taxed as they will surely pass on these impositions as additional charges on the prices of their products and services. Thus, there is no hiding that the increase in excise taxes hit low-income and poor families in the hardest," the petition stated.

The government has repeatedly touted the benefits of the TRAIN Law, which  provides income tax cuts for the majority of Filipino taxpayers while raising additional funds to help support the government’s accelerated spending on its ?infrastructure and social services programs.

Dominguez had said 99 percent of the country’s population will benefit from the TRAIN, with salaried employees and self-employed individuals earning a taxable income of P250,000 per year, or around P21,000 a month, exempted from paying the personal income tax (PIT).

Other taxpayers in higher income brackets will also get to enjoy significant PIT cuts, except the ultra-rich or those earning P8 million a year and above.

Also, 13th month pay and other bonuses amounting to P90,000 a month are non-taxable. — MDM, GMA News