TRAIN 2 ready to roll in Senate

TRAIN 2 or the second tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) is ready to roll in the Senate as the Senate ways and means committee has scheduled hearings on the bill.

Last 2 August, the House ways and means committee approved in principle the chamber’s TRAIN 2 counterpart bill.

The House panel also formed a technical working group tasked to consolidate the different bills seeking to reduce corporate income tax (CIT) while rationalizing fiscal incentives.

Sen. Juan Edgardo “Sonny” Angara, chairman of the Senate Ways and Means Committee, said he expects long consultative hearings on the proposed measure under Senate Bill 1906 filed by Senate President Vicente Sotto III.

Angara vowed to give all stakeholders a chance to present their views on the proposal.

He said he is considering the conduct of hearings after completing consultations on the tax amnesty bill which is another priority proposal.

According to the Department of Finance (DoF), the proposed general tax amnesty is expected to raise P26 billion. This revenue will augment the funding for the Build, Build, Build program.

“We have to conduct hearings on this important topic (TRAIN 2). In fact, we need a lot of hearings regarding this because many are affected by this,” said Angara during a radio interview over the weekend.

During his State of the Nation Address, Duterte expressed hopes that he can sign the TRAIN 2 bill before the year ends.

Angara said debates on TRAIN 2 will be timely as the country seeks ways to boost its competitiveness against neighboring countries in Asia.

“We have to hear what they (stakeholders) wanted to say,” Angara said.

He cited the prevailing 30 percent CIT compared to an average of 23 percent in Asia.

Angara said revenue losses from the planned reduction of CIT are expected to be recouped through the reform of incentives and benefits to investors, particularly in economic zones such as those in Subic, Aurora, Cagayan and Clark.