Even if Sotto files TRAIN 2, no senator inclined to support it —Zubiri

The second package of the controversial Tax Reform for Acceleration and Inclusion (TRAIN) Law still has no support from most of the senators even if Senate President Vicente Sotto III is the one to file it.

“Wala e,” was the reply of Majority Leader Juan Miguel Zubiri on Wednesday when asked if senators are now inclined to support the bill being pushed by the administration.

Sotto said Tuesday that he will study the documents from the Department of Finance and file the bill.

Zubiri said the senators were wary of a provision in the bill repealing incentives enjoyed by different industries.

“Wala naman akong problema sa pagbaba ng corporate income tax. Ang problema ko at problema ng napakarami sa ating mga kasama sa Senado, ang pagtanggal ng insentibo sa iba’t ibang industriya na ibinigay na sa mga batas na ipinasa natin,” he said.

“We are worried na pag tinanggal natin ang mga incentives na ito ay marami sa ating mga kababayan ang mawawalan ng trabaho,” he added.

Zubiri also said that several foreign chambers of commerce have expressed the apprehension that once the incentives are removed, many companies would leave the Philippines.

“Kausap ko ang Japan Chamber of Commerce, American, European, Korean. Kung mawawalan sila ng incentives natatakot sila na baka ang mga korporasyon ay umalis ng Pilipinas at pumunta sa ibang bansa,” he said.

He said he explained the matter to Sotto who, in turn, told him that he would just file the bill so that the Senate can start discussing it.

“Na-explain ko naman ‘yan kahapon kay Senate President at sabi n’ya, 'Maganda ‘yan Migz na sinabi mo sa akin at pwede na natin pagdebatehan dito sa Senado.' Ang sabi nya he will file it for the purpose of discussing it, para pag-usapan na kesa di natin pag usapan, di natin malalaman kung may disadvantages o advantages,” he said.

Zubiri said 2,600 corporations—including those in the business process outsourcing (BPO) industry, which employs about one million Filipinos—are currently benefiting from the incentives.

“All the big call centers pag tinanggal n’yo ang mga incentives na binigay sa kanila alam mo Vietnam, Thailand, hinihintay lang nila na lumipat sa kanila ang mga kumpanya dito sa Pilipinas. Isang milyon na trabahante ‘yun, kaya ba natin mawalan ng trabaho ang ating mga kababayan? So we have to study this carefully,” he said.

Aside from BPO, also to be affected by the TRAIN 2 are the renewable energy sector and manufacturing sector.

“One company dito sa Tanauan is employing about 40,000 laborers in one plant alone, and this is located in economic zone. The plan in TRAIN 2 is to remove incentives given to eco-zone so what will happen to Subic, to Clark?" Zubiri said.

He said the senators from Region 3 such as Senators Richard Gordon and Joel Villanueva have already said in their caucus Tuesday that they will oppose the bill if it removes incentives given to companies in Subic and Clark.

The majority leader said one possible solution is the inclusion of a sunset provision which will give companies some leeway.

“All the companies naman are saying is to give them sunset provision pero ‘wag immediate, ang hinihingi nila 10 taon. Nakausap ko ang iba’t ibang chambers, dapat alam ng economic managers where I am coming from kasi ako ang dating chairman ng trade and industry committee,” he said.

“Kung immediate na ipapatupad ito, andaming hindi papasok at aalis [na kumpanya]. I believe Thailand is giving a 10-year tax holiday. We can look at different tax incentives and pattern it to them,” he said.

Senator Juan Edgardo Angara, chairman of the committee on ways and means, said he wanted to hear all the stakeholders on the measure.

“I don’t want to prejudge the measure either way. I think it’s best to hear it and hear all the stakeholders…I think as chairman [of the committee] it’s better that I’m a neutral arbiter,” he said.

He said TRAIN 2 is politically sensitive issue because it is economically sensitive.

“Dahil ang pinag-uusapan dito negosyo, trabaho, presyo. At sa parte naman ng gobyerno, ang pinag-uusapan ay ‘yung reputation ng ating gobyerno. Kapag binabago ang mga panukala o ang pamantayan ng pag-i-invest. So yun ang mga nakasalalay dito kaya siguro sinasabi ng iba na ito’y sensitibong bagay,” he said. — BM, GMA News