Bam doubts government’s claim that TRAIN 2 won’t entail job losses

Senator Paolo “Bam” Aquino doubts the Department of Finance’s claim that there will be no job losses if the second package of tax reforms is enacted into law.

“Huwag na po niyong paikutin ang taumbayan. Nalulunod na nga sa taas presyo dahil sa TRAIN 1, lolokohin n’yo pa pagdating dito sa TRAIN 2,” said Aquino, one of the four senators who voted against ratifying the proposed Tax Reform for Acceleration and Inclusion (TRAIN) law.

The second package is called Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO).

Finance Undersecretary Karl Kendrick Chua has said that TRABAHO, which aims to lower corporate income taxes but rationalize fiscal incentives, will not result in job losses and further spikes in consumer prices.

“Sa TRAIN 1, sinabi ng gobyerno na hindi ito makaaapekto sa pagtaas ng presyo. Ngayong TRAIN 2, sinasabi nilang walang mawawalang trabaho ... May maniniwala pa ba sa kanila?” Aquino said.

TRAIN 1 is being blamed for the continuous spikes in inflation, which compelled the Bangko Sentral ng Pilipinas to raise key policy rates thrice so far this year.

Aquino said locators in the Clark Freeport Zone might be forced to close shops and move to other countries if TRAIN 2 is enacted into law, which will lead to thousands of Filipinos losing their jobs.

“Marami sa industry associations ang nagsabi na kapag natuloy ang TRAIN 2, aalis sila at lilipat sa Indonesia, Thailand, at Vietnam. Mahalaga ang trabaho ng bawat Pilipino at kailangan natin itong protektahan,” he said.

The senator also doubted the government’s capacity to deliver on time the financial package proposed in the House version for workers who might be displaced once TRAIN 2 is enacted into law as the social mitigating measures for TRAIN 1 have yet to be completely implemented.

“Malapit nang matapos ang 2018 pero hanggang ngayon, hindi pa rin nila naibibigay ang pangakong tulong sa ilalim ng TRAIN 1 habang nalulunod na sa taas ng presyo ng bilihin ang mahihirap na Pilipino,” he said, referring to the unconditional cash transfer program and the Pantawid Pasada Program.

“Marami na ngang palpak ang TRAIN 1, itutulak pa rin ang TRAIN 2. Siguraduhin na muna nating napag-aralan na talaga ang epekto ng mga panukalang ito kundi baka mayroon nanamang masasagasaang mahihirap na Pilipino,” Aquino said.

The government must first address the problems caused by TRAIN 1, like its impact on prices of goods and inflation, before pushing for TRAIN 2, the senator noted. —VDS, GMA News