Tax Reform

Sen. Bam calls for Senate probe on slow cash transfer program

A senator has filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer under Tax Reform Acceleration and Inclusion (TRAIN), which was enacted into law on December 19, 2017.  

Sen. Bam Aquino wants to ensure that the cash assistance for 10 million poor Filipino families under the TRAIN Law is sufficient to cover the increase in prices of goods and other services.  

“Siguraduhin natin na makakarating nga ang financial assistance sa mga pamilyang nangangailangan. Bantayan natin ang proseso at suriin natin kung sapat na ang 200 pesos kada buwan,” said Sen. Bam.  

 “The government must prioritize the poor and ensure that its policies benefit them rather than impose even more financial burdens,” Sen. Bam added.  

 Republic Act No. 10963 mandates financial assistance to 10 million poor Filipinos to counter the expected increase in prices of goods. In 2018, they will receive P200 monthly followed by a P300 monthly cash subsidy in 2019 and 2010.  

 However, the government said it cannot implement the cash transfer program at the same time as the tax reform and expected price increases due to lack of proper infrastructure.  

The government intends to use the Department of Social Welfare and Development’s (DSWD) system for the Pantawid Pamilya Pilipino Program (4Ps) to distribute funds to the existing 1.8 million beneficiaries with cash cards by January 31, 2018. But the remaining 2.6 million recipients without cards would have to wait.  

Sen. Bam also said that the cash transfer for the additional 5.6 million households is still in limbo with no actual date of release set.  

“The failure of the government to implement an effective financial assistance program in time for the projected price increases will burden Filipino families,” stressed Sen. Bam.  

 During the measure’s period of amendments in the Senate, Sen. Bam pushed for the immediate implementation of the financial assistance program to help poor Filipinos absorb the expected increase in the prices of goods and services.   

However, Sen. Bam’s proposal was not accepted, prompting the senator to vote against its ratification.  

“Without a cash transfer program in place, poor Filipinos will bear the brunt of the increase in prices of goods and services due to the fuel taxes and sweetened beverage tax. Without the necessary safeguards for the poor, I cannot support this measure,” Sen. Bam emphasized.

Sen. Bam warns public: Brace for increase in prices in 2018

Senator Bam Aquino informed the public to brace for the increase in prices of basic commodities in 2018 due to the Tax Reform for Acceleration and Inclusion (TRAIN)  that was enacted into law recently by the government.
 
“We won’t be surprised by the increase in prices in 2018. Ito ang dahilan kung bakit kumontra tayo sa pagsasabatas ng TRAIN dahil masasagasaan nito ang mga kababayan nating mahihirap,” said Sen. Bam.
 
Sen. Bam made the reaction after the Industrial Group of Zamboanga warned that prices of sardines will increase starting next year due to the excise tax imposed on petroleum products.
 
“Ito’y isa lang sa inaasahan nating pagtaas sa presyo ng bilhin na ang papasan ay ang mahihirap nating kababayan,” Sen. Bam said.
 
Sen. Bam rejected the TRAIN’s approval due to the inability of government to implement the financial assistance program in time for the increase in prices due to provisions on excise tax on fuel and sweetened beverage tax.
 
The Department of Finance (DOF) proposed a cash transfer program with a P200 monthly financial assistance on the first year and P300 monthly financial assistance for the second and third year to help cover the increase in prices of basic goods.
 
During the period of amendments, Sen. Bam pushed for the immediate implementation of the cash transfer program to help poor Filipinos absorb the expected increase in the prices of goods and services.  However, Sen. Bam’s proposal was not accepted by the DOF.
 
“In the end, poor Filipinos will bear the brunt of this tax reform program as it will increase the prices of basic commodities without the immediate cash transfer assistance to the poor” said Sen. Bam.
 
Sen. Bam renewed his call to the government to speed up the implementation of the cash transfer program so poor people won’t be burdened by the increase in prices.
 
Sen. Bam is also hoping that the increase in take-home pay will be enough to offset the increase of prices of goods and services.
 
In addition, the lawmaker urged the government to focus on improving the performance of revenue-generating agencies such as the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR).
 
Data from the Finance Department shows that an additional P726 billion can still be collected by government by addressing inefficiencies and removing loopholes in the BIR.
 
The government can also collect at least P231 billion if the importation gap and smuggling is resolved by BOC.

Sen. Bam Aquino’s Explanation of No-Vote for TRAIN Ratification

Thank you, Mr. President.

First of all, Mr. President, let me just say that my no vote at the ratification is by no means an indication of the leadership and the diligence of our Chairman. Our Chairman worked very hard for this bill, and I believe he really did his best to come up with the best version that he could, with the circumstances given to him.

However, Mr. President, if I I could explain my vote, the DOF knows that there was really one major provision or one major aspect of this bill that was important to this representation. At yun, Mr. President, yung epekto ng batas na ito sa napakaraming mahihirap sa ating bansa.

Totoo po, Mr. President, merong 6 million Filipinos ang matutulungan ng batas na ito. 6 million Filipinos, in fairness, Mr. President, and will congratulate this portion of the bill, will go to the larger take-home pay. However, Mr. President, in the records of the Department of Finance, in their deliberations, in their presentations to the individual senators, lumalabas po talaga na dahil sa pagtaas ng bilihin, we’re looking at the bottom 40% of the Filipino people who will carry the brunt of the tax reform because of the increase in prices.

Now, Mr. President, a lot of us have raised this issue. At yung na-mention po ng DOF na tulong sa ating mga kababayan ang unconditional cash transfer. In short, Mr. President, yung pang-balanse sa napakaraming pamilyang Pilipinong naghihirap dahil sa pagtaas ng presyo ng bilihin, at yung pagbibigay ng 200, or- ngayon po 200 pero initially in the Senate version 300 pesos per month na tulong, financial assistance to the bottom, roughly 10 million families to help them with the increase in prices because of the tax reform. Mr. President, with that assertion, marami po sa atin, napanatag ang kalooban.

However, Mr. President, lumabas po doon sa ating interpolation, at lumabas po doon sa ating pananaliksik ng DOF at ng iba pang mga ahensya, na hindi po kayang i-implement ang programang iyon na kasabay sa pagtaas ng presyo ng ating bilihin.

And Mr. President, yun po siguro yung isang bagay na para sa akin, hindi ko pwedeng suportahan ang batas na ito kung hindi maisasabay  ang tulong na pinansyal sa ating mga kababayan doon sa pagtaas ng taxes ng napakaraming produkto sa ating bansa. And I hope, Mr. President, this no-vote will spur our agencies to work faster, and this is, of course, DOF, DSWD, and other concerned agencies, na sana po, hindi gaya ng sabi nila, na hindi kayang isabay ang programa doon po sa pagtaas ng presyo ng mga bilihin. Sana po mahanapan pa po nila ng paraan, na sa madaling panahon, masabay po nila yung programang tulong na pinansyal sa mga kababayan natin doon po sa pagtaas ng taxes sa napakaraming presyo, sa napakaraming bilihin sa ating bansa. And because of that, Mr. President, I, unfortunately, cannot support this measure. Thank you, Mr. President.

Sen. Bam votes to stop TRAIN from passing Congress

The tax reform package will increase prices for all Filipinos without the necessary safeguards to protect our poor countrymen.
 
This is the reason given by Senator Bam Aquino as he rejected the approval of the Tax Reform for Acceleration and Inclusion or TRAIN.
 
While Sen. Bam is a co-author of the income tax reform bill and is in full support of increasing the take home pay of many Filipino working class, he voted no to the bundled tax reform package due to the provisions on excise tax on fuel and sweetened beverage tax, which will lead to higher prices of goods and services. 
 
“I cannot, in good conscience, vote for the approval of this tax reform package. Hindi ako pabor sa mga probisyon na magdudulot ng pagtaas ng presyo ng bilihin, lalo na dahil ang mga mahihirap na Pilipino ang pinaka tinatamaan dito,” said Sen. Bam on his no-vote for the tax reform package.
 
To cushion the blow to the poor, the Department of Finance proposed a cash transfer program with a P200 monthly financial assistance on the first year and P300 monthly financial assistance for the second and third year to help cover the increase in prices of basic goods.
 
But during the period of amendments in the Senate, Sen. Bam’s proposal requiring the financial assistance mechanism to be in place before taxes are increased was not accepted.
 
“Hindi dapat ipataw ang mga bagong tax na magpapataas ng presyo ng bilihin, tulad ng excise tax on fuel, hangga’t hindi nasisigurado ng gobyerno na magiging maayos ang unconditional cash transfer program,” Sen. Bam stressed.
 
The DOF admitted that they cannot implement the financial support program for poor families in time for the price increases because of TRAIN next year.
 
The senator also lamented that the government is forcing hardworking Filipinos to compensate for our inefficiency in tax collection of both the Bureau of Customs and the Bureau of Internal Revenue (BIR).
 
Based on data from the Finance Department, Sen. Bam said the government can still collect an additional P726 Billion or 6.44% of GDP if we simplify, address inefficiencies and remove loopholes in BIR.
 
The government can still collect at least P231 billion or equivalent of 2% of GDP if the P1.8 Trillion importation gap or smuggling is resolved by BOC.
 
“Para sa pamilyang Pilipino, lalo na para sa mga mahihirap nating kababayan, kontra po ako sa pagtaas ng buwis at pagtaas ng presyo,” Sen. Bam said.

Sen. Bam: No more taxes for micro businesses

Micro enterprises earning less than P250,000 annually will no longer be required to pay percentage taxes thanks to the amendment pushed by Sen. Bam Aquino on the proposed tax reform program.

 During the period of amendments on the Tax Reform Acceleration and Inclusion Act (TRAIN), Sen. Bam pushed for an amendment that exempts micro enterprises earning below P250,000 from paying percentage tax, on top of their income tax exemption.

“Exempted na sa percentage tax ang mga fishball vendors, sari-sari store owners, pati ang mga magsasaka at mangingisda na kumikita ng 250,000 pesos or less sa isang taon,” said Sen. Bam Aquino, a former social entrepreneur and principal sponsor of the Go Negosyo Act.

“We moved for this amendment because we have received many reports that some micro businesses are being required to pay the 3% percentage tax,” Sen. Bam added.

 Sen. Bam said the amendment will ensure a tax-free status for our micro entrepreneurs and free them from harassment by tax agents, at no additional cost to the government. The senator also proposed to simplify bookkeeping records and requirements for micro businesses.

 Sen. Bam is thankful to Sen. Sonny Angara, chairman of the Committee on Ways and Means, for accepting both these amendments in support of the micro enterprise sector.

 “Protektahan natin ang kita ng mga maliliit na negosyo at kabuhayan ng maraming pamilyang Pilipino,” said Sen. Bam, adding that this will help one million Filipinos or more.

 The Senate will continue to deliberate on the amendments to the TRAIN on Monday. “We will ensure that this amendment will make it to the end,” said Sen. Bam.

Sen. Bam: Increase in taxes will hit poor Filipinos

Sen. Bam Aquino said the proposed tax reform measure would lead to higher prices of basic goods and other services if the government insists on passing it.

“Alam naman natin na ang pagtaas ng bilihin ay napakasakit sa bulsa ng maraming Pilipino,” Sen. Bam said in a radio interview.

But without the necessary number to block its passage, Sen. Bam said the minority could only work on easing the measure’s burden on the public.

“Kaya sinisikap naming siyasatin ang lahat ng probisyon. Ang binabantayan namin sa minority ay masiguro ang mga benepisyo sa tao, tulad ng pagkakaroon ng bagong bracketing sa personal income tax,” added Sen. Bam, vice chairman of the Committee on Ways and Means.

“Para naman sa mahihirap nating kababayan, hindi dapat ipataw ang mga bagong tax na magpapataas ng presyo ng bilihin, tulad ng excise tax on fuel, hangga’t hindi nasisigurado ng gobyerno na magiging maayos ang unconditional cash transfer program,” Sen. Bam stressed.

“Kailangan matiyak na mayroong makukuhang tulong kada buwan mula sa pamahalaan ang mga mahihirap na pamilya upang mabalanse ang pagtaas ng presyo ng bilihin,” Sen. Bam said.

Sen. Bam assured that minority senators are working to ensure that the public will be able to bear the brunt of the proposed tax reform measure, especially with the expected rise in prices of basic commodities and other services.

“Sana mas maging aktibo ang taumbayan, na kung ayaw nating tumaas ang bilihin, dapat magsalita tayo. Dumulog tayo sa ating mga congressman at senador kasi masakit sa pamilyang Pilipino kapag nagkaroon ng pagtaas sa presyo ng bilihin,” added Sen. Bam.

In the 17th Congress, Sen. Bam has filed Senate Bill No. 697 that seeks to revise the current income tax bracket set by the National Internal Revenue Code, which was passed in 1997.

The measure seeks to amend Section 24 of the National Internal Revenue Code of 1997, as amended, by adjusting the levels of net taxable income and simplifying the nominal tax rates for the purposes of computing the individual income tax. 

If enacted into law, Sen. Bam said the measure effectively lowers the taxes on the 22-million Filipino working class.

Sen. Bam: Do not allow price increase until expanded cash transfer system works

Sen. Bam Aquino stressed that an effective mechanism for the transfer of money to 10 million poor Filipino households under a cash transfer program should be in place before any price increase under the Tax Reform for Acceleration and Inclusion Act (TRAIN).

 During the interpellation period of the tax reform measure, Sen. Bam underscored the importance of the cash transfer program to help poor Filipinos bear the brunt of the price increases that may result in the TRAIN implementation once it is passed into law.

The current 4.4 million households under the Pantawid Pamilya Pilipino Program or 4 Ps and an additional 5.6 million households are targeted for the cash assistance program of the government.

“The cash transfer is crucial for poor families to cope with the price increase. Without this, the tax reform will be an additional burden to Filipinos in need,” said Sen. Bam.

Under the Senate version, poor households will be given P300 a month for three years to help them deal with any increase in prices brought about by the tax measure. The government estimates that P2.5 billion annually will be used for the cash transfer program.

 “Ang mahihirap na Pilipino ang matatamaan ng pagtaas ng presyo dahil sa tax reform,” Sen. Bam asserted.

“We must not have an increase in prices without ensuring that we have an effective cash transfer system in place for poor families,” Sen. Bam said during his interpellation of the measure’s sponsor, Sen. Sonny Angara.

Sen. Bam suggested that implementing government agencies, led by the Department of Social Welfare and Development (DSWD), must certify that they have an efficient, effective and transparent system in place.

Sen. Bam: Senate’s duty to ensure that Tax Reform Package does not raise prices of goods

Sen. Bam Aquino expressed support behind the Senate leadership’s plan to convene as a committee of the whole to discuss the tax reform package being pushed by the Duterte administration.

“There are a number of concerns that need to be addressed with the current version of the tax reform package,” said Sen. Bam, vice chairman of the Committee on Ways and Means, ““I will support the move of our Senate leadership.”

The senator said that the committee of the whole can give senators a venue to raise these concerns.

Earlier, President Duterte asked Senate to pass the government’s tax reform package in its entirety during his State of the Nation Address (SONA).

However, Sen. Bam said the Senate owes it to the people to go over the measure with a ‘fine-toothed comb” to determine the impact of each provision to prices of commodities, jobs and other economic issues.

“Ang pagtaas ng presyo ng bilihin ay seryosong bagay at nararapat lang na gawin ng Senado ang aming tungkulin bilang kinatawan ng taumbayan na suriin ang mga panukalang ito,” said Sen. Bam.

“Interesado ako sa mga probisyon na posibleng makapagtaas sa presyo ng bilihin tulad ng bigas. We don’t want our people to suffer from higher prices of commodities,” he added.

Sen. Bam also promised to scrutinize provisions that will affect employment of Filipinos, such as business process outsourcing or call centers, and the competitiveness of industries and the agriculture sector such as the sugar industry.

“Some farmers groups have already raised concerns on excise tax on sugar and sweetened beverages because it will affect their livelihood,” said Sen. Bam.

Sen. Bam also wants to determine the economic impact of each provision of the tax reform package and not just the projected amount of tax that will be collected from it.

As part of his efforts to reduce personal income tax rate, Sen. Bam has filed Senate Bill No. 697 that seeks to revise the current income tax bracket set by the National Internal Revenue Code, which was passed in 1997.

The measure seeks to amend Section 24 of the National Internal Revenue Code of 1997, as amended, by adjusting the levels of net taxable income and simplifying the nominal tax rates for the purposes of computing the individual income tax.

Sen. Bam is also pushing to lower taxes for small business through Senate Bill No. 169 or the Small Business Tax Reform Act.

Sen. Bam: We owe it to the people to scrutinize proposed tax reform package

Sen. Bam Aquino assured the public that the Senate will put the tax reform package being pushed by the Duterte administration under the microscope, saying lawmakers owe it to the people. 
 
“Pagdating sa tax reform package, mukhang mahaba-haba pa ang mangyayaring debate tungkol dito,” said Sen. Bam, vice chairman of the Committee on Ways and Means. 
 
“We owe it to the Filipino people na kilatisin iyon kasi at the end of the day, tataas ang presyo ng bilihin dahil sa panukalang ito,” stressed Sen. Bam, adding that the Senate cannot accede to the President request to pass the tax reform package in total. 
 
In an earlier interview, Sen. Bam warned that the government’s plan of imposing excise tax on liquefied petroleum gas, gasoline and diesel under its tax reform package will lead to higher prices of commodities. 
 
“The excise tax on LPG, gasoline and diesel will raise prices eventually. It might be inflationary because everything is transported. This will affect the pockets of our countrymen,” said Sen. Bam. 
 
However, Sen. Bam said he supports the move to reduce personal income tax rate, saying it was part of his advocacy when he became a senator. “Hindi naman tama na iyong CEO at kanyang secretary ay parehong kinakaltasan ng 32 percent na income tax,” said Sen. Bam. 
 
In the 17th Congress, Sen. Bam has filed Senate Bill No. 697 that seeks to revise the current income tax bracket set by the National Internal Revenue Code, which was passed in 1997. 
 
The measure seeks to amend Section 24 of the National Internal Revenue Code of 1997, as amended, by adjusting the levels of net taxable income and simplifying the nominal tax rates for the purposes of computing the individual income tax.

Bam: Let’s not burden Filipino families with higher tax and prices

Any tax measure that burdens Filipino families with higher prices would go through the proverbial eye of the needle in the Senate, assured Sen. Bam Aquino.
 
“Any measure that will increase prices, babantayan namin iyan. For me, it’s something that every Filipino family doesn’t want to see, an increase in prices,” said Sen. Bam in a television interview.
 
“Walang pagtaas ng tax na hindi maaapektuhan ang mga Pilipino,” he added.
 
The senator made the pronouncement in connection with the government’s plan to impose P6 to P10 excise tax on diesel under its tax reform agenda.
 
Sen. Bam said the government’s plan “is little bit of a hard sell” but senators are expected to tackle the measure during plenary debates where they will listen to positions of different stakeholders.
 
“I think during the plenary debates, a lot of figures will be presented to us. We will listen to reason and different parties. Titingnan natin kung ano ang epekto nito sa presyo ng bilihin at sa national budget,” said Sen. Bam.
 
In particular, Sen. Bam wants to determine the exact effect of the planned imposition of excise tax on diesel fuel to prices of goods and agricultural products transported by diesel-powered vehicles to markets in different parts of the country.
 
In the 17th Congress, Sen. Bam has filed Senate Bill No. 697 that seeks to revise the current income tax bracket set by the National Internal Revenue Code, which was passed in 1997.
 
The measure seeks to amend Section 24 of the National Internal Revenue Code of 1997, as amended, by adjusting the levels of net taxable income and simplifying the nominal tax rates for the purposes of computing the individual income tax. 
 
If enacted into law, Sen. Bam said the measure effectively lowers the taxes on the 22-million Filipino working class, allowing them to enjoy a higher net income and increase their purchasing power.
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