TRAIN Law

Sen. Bam to gov’t: Protect Filipinos from killer combo of rising prices and unemployment

Senator Bam Aquino called the increase in prices of goods and the rising unemployment a killer combo that needs to be addressed immediately.

“Huwag natin i-knockout ang pamilyang Pilipino sa combo na pagtaas ng presyo ng bilihin at kawalan ng trabaho,” said Sen. Bam, one of only four senators who voted against the ratification of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

A recent Pulse Asia survey indicated that 98 percent of respondents claimed the prices of basic goods they usually purchase have increased due to the tax reform law, and around 86 percent said they were strongly affected by the prices increases.

In addition, a latest survey by SWS showed that the number of unemployment Filipinos rose to 10.9 million, the highest since 2016.

“Hindi na biro ang epekto ng TRAIN sa mga Pilipino, kaya tayo tumutol dito. Ngayon na mas malala pa pala ang kinalabasan nito, dapat lang na pag-aralan at solusyunan ang matinding pagtaas ng presyo,” said Sen. Bam.

Sen. Bam said he will present stories of Filipinos affected by the TRAIN Act from the series of community dialogues that he conducted in different parts of the country when the Senate conducts a hearing on the tax reform program on May 9 (Wednesday).

“Mahalagang mailabas natin ang bigat na ibinibigay ng TRAIN upang ito’y marepaso at nang maibsan ang pasanin ng ating mga kababayan,” said Sen. Bam.

Sen. Bam also urged Congress not to move forward with TRAIN 2, as it may exacerbate the problem of unemployment by removing incentives for certain businesses.

 Sen. Bam has filed Proposed Senate (PS) Resolution No. 704, calling for a review of the TRAIN Act, claiming it greatly contributes to the increase in prices of goods and services that burdens Filipinos, mostly the poor.

Sen. Bam: Working Filipinos should be supported, not burdened further

In commemoration of Labor Day, Senator Bam Aquino called on the government to prioritize the welfare of Filipino workers and protect their livelihood through sound policies and actions.

 “Dapat isipin ng pamahalaan sa bawat desisyon at reporma ang kapakanan ng mga Pilipinong nagtatrabaho tulad ng mga magsasaka, mangingisda at OFWs. Subalit sila ngayon ang binibigo ng administrasyon,” said Sen. Bam, one of four who voted against the ratification of the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

Sen. Bam insisted that the recent tax reform packages proposed by the government only burden the working class with increasing prices of goods and potential loss of livelihood.

 The administration’s push to enact the second tax reform package, which will remove incentives for companies, could lead to loss of jobs for many Filipinos.

“Nagdurusa na nga ang marami nating mga kababayan sa mataas na presyo ng bilihin sa unang bugso ng tax reform ng gobyerno, ngayon naman aalisan natin sila ng ikabubuhay,” said Sen. Bam, referring to the TRAIN Act.

Sen. Bam has filed Senate Resolution No. 704, calling for a review of the TRAIN Law, claiming it greatly contributes to the increase in prices of goods and services that burdens Filipinos, especially ordinary workers.

Sen. Bam also submitted Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

 In addition, Sen. Bam pointed out that the government’s decision to remove restriction on rice importation could be detrimental to the work of Filipino farmers, who rely heavily on their harvest for their livelihood.

“Posibleng makasama pa sa ating mga magsasaka ang ura-uradang desisyon ng deregulasyon ng rice imports. Hindi quota ang problema natin kundi ang kakayahan nga NFA na gawin ang kanilang trabaho,” said Sen. Bam.

 In the 17th Congress, Sen. Bam has filed several measures that focus on the welfare of Filipino workers, includingg overseas Filipino workers (OFWs), freelancers and reservists.

Sen. Bam to admin: Listen to Filipino people, review TRAIN law

Senator Bam Aquino urged the government to listen to the Filipino people in light of the latest Pulse Asia survey showing pay hikes and increase in prices as major concerns of the public.

 “Pakinggan natin ang hinaing ng mga Pilipinong nabibigatan sa mataas na presyo ng bilihin at hindi sapat na kita,” said Sen. Bam, who has visited a number of local communities to hear out their concerns on the rising prices of goods.

The survey conducted by Pulse Asia from March 23 to 28 showed that 50 percent of the respondents mentioned salary increase as the most urgent issue while 45 percent pointed to inflation.

“Sa pagtaas ng presyo ng bilihin, sapat ba ang 200 pesos per month na cash transfer ng gobyerno? Panahon na para suriin ang totoong epekto ng TRAIN law at siguraduhing hindi pinapahirap ng gobyerno ang buhay ng mga Pilipino,” Sen. Bam stressed.

 With this development, Sen. Bam reiterated his call to review Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act as it contributes to the increase in prices of goods and services that burdens Filipinos, especially the poor.

Recently, Sen. Bam filed Senate Resolution No. 704, urging the appropriate Senate Committees to conduct an inquiry on the TRAIN’s inflationary impact and effect on the economy, particularly the P7 and P2.50 excise tax increase on gasoline and diesel, respectively.

Sen. Bam also filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

In his resolution, Sen. Bam said the Department of Finance assured lawmakers that TRAIN’s impact on inflation would not be more than 0.7 percent.

However, latest data from the Philippine Statistics Authority (PSA) showed that the country’s inflation rate for March hit 4.3 percent.

Sen. Bam renews call to review TRAIN as families struggle with rising prices

After a series of consultations with urban poor communities, Sen. Bam Aquino once again stressed the need to review the government’s tax reform program, saying families are struggling with the considerable jump in prices of goods and services. 

 “Marami nang dumadaing at naaalarma sa mataas na presyo ng bilihin na dulot tax reform program ng pamahalaan,” said Sen. Bam, alluding to Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Act.

“Karamihan sa mga nakausap namin, nagrereklamo na Dati piso-piso lang ang taas, ngayon ang laki na. Ang laki na ng nabawas sa nabibili nating grocery para sa ating pamilya,” said Sen. Bam.

While Sen. Bam acknowledged that the TRAIN has increased the take-home pay of ordinary workers, for some, the additional pay is not enough to cover the rise in prices of basic goods in the market.

Recently, Sen. Bam filed Senate Resolution No. 704, urging the appropriate Senate Committees to conduct an inquiry on the TRAIN’s inflationary impact and effect on the economy, particularly the P7 and P2.50 excise tax increase on gasoline and diesel, respectively.

 When Congress approved the inclusion of increased excise taxes in the TRAIN Law, the Department of Finance assured lawmakers that its impact on inflation would not be more than 0.7 percent.

However, latest data from the Philippine Statistics Authority (PSA) showed that the country’s inflation rate for March hit 4.3 percent, beyond the government’s projection of two to four percent.

“Ngayong lumampas na ang inflation sa pagtaya ng pamahalaan, marapat lang na muli nating pag-aralan ang pagpapataw ng excise tax sa produktong petrolyo,” said Sen. Bam.

In addition, Sen. Bam filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

Sen. Bam calls for review of TRAIN amid inflation, rising prices

A senator insisted on evaluating the government tax reform program as he expressed alarm over the latest inflation projections on top of the rising prices of petroleum products and rice in the market.

“Nakakaalarma na para sa mga pamilya ang pagtaas ng presyo ng bilihin. Ngayon, mas mataas pa sa inaasahan ng pamahalaan ang inflation rate,” said Sen. Bam Aquino, referring to several projections that the inflation rate might range from 4.2 percent to 4.8 percent due to higher excise tax. 

 The latest projections were beyond the government’s forecast of between two to four percent, according to Sen. Bam.

“We should evaluate the tax reform law and consider suspending excise taxes given the surge in prices,” added Sen. Bam, who plans to file a resolution to assess the real impact on inflation and economy of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

 “Congress should determine the real and actual impact of TRAIN on the economy and especially on the lives of Filipinos,” said Sen. Bam, adding that the sharp rise in inflation could lead to a higher cost of living and can aggravate poverty. 

 “The continued implementation of TRAIN could lead to greater marginalization and suffering for many Filipino families,” Sen. Bam emphasized.

During the Senate hearings on TRAIN, Sen. Bam said the Department of Finance (DOF) insisted that the tax reform program’s inflationary impact would not be higher than 0.7 percent, meaning inflation should not go higher than 3.6 percent in 2018.

“We have to review the implementation of excise taxes as it was passed by Congress based on wrong information,” said Sen. Bam. 

Earlier, Sen. Bam voted to reject the TRAIN Law during its ratification. 

Sen. Bam also filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

Sen. Bam to gov’t: Where is financial assistance for rising prices?

With effects of the Tax Reform for Acceleration and Inclusion (TRAIN) Act now being felt by the public coupled with the rise in the price of rice and lack of affordable NFA rice in the market, Sen. Bam Aquino urged the government to immediately implement the cash transfer program for poor Filipinos.

“Tumataas na ang presyo ng mga bilihin dahil sa tax reform, na sinabayan pa ng pagkawala ng NFA Rice sa merkado. Nasaan na ang financial assistance para sa mga mahihirap na pamilyang Pilipino?” said Sen. Bam.

 Sen. Bam made the pronouncement amid the increase in prices of basic goods due to TRAIN and the sudden rise in prices of rice in the market due to lack of supply of NFA Rice.

The Philippine Statistics Authority (PSA) also announced on Tuesday that the country’s inflation rate in February was at 4.5 percent, the fastest in over three years.

 “Masyado nang mabigat ang pasaning dala ng ating mga kababayan dahil sa pagtaas ng presyo ng bilihin. Panahon na upang madaliin ng pamahalaan ang paglabas ng tulong para sa sampung milyong mahihirap nating kababayan,” said Sen. Bam.

 Sen. Bam was referring to the financial assistance mandated by Republic Act No. 10963 or TRAIN Act 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.

 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 him to reject the ratification of the measure.

 Recently, Sen. Bam filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services.

 In his resolution, Sen. Bam also called on the National Economic Development Authority (NEDA) to check if household incomes are enough to absorb these rising costs.

“Gusto rin natin alamin kung sapat na ang 200 pesos kada buwan na cash transfer, lalo na ngayong tumataas na rin ang presyo ng kuryente at bigas,” said Sen. Bam.

 

Sen. Bam fears TRAIN is killing jobs, livelihood opportunities

Apart from rising prices of goods and services, a senator is dismayed that the Tax Reform Acceleration and Inclusion (TRAIN) Law is leading to less jobs for Filipinos, according to Sen. Bam Aquino.

“We are now feeling the effects of TRAIN, not just on prices of goods, but also on jobs of thousands of Filipinos. The government is duty bound to cushion the blows of heavy taxes on jobs and employment,” said Sen. Bam.

“Natatakot ako para sa kabuhayan ng pamilyang Pilipino. Kailangan solusyunan ito ASAP,” Sen. Bam added.

Recently, Coca-Cola FEMSA Philippines Inc. announced that it will trim down its workforce in light of the passage of the TRAIN Law that imposes P6 per liter excise tax on beverages using caloric and non-caloric sweeteners and P12 per liter on beverages using high-fructose corn syrup. Reports have it that 600 workers from various units of Coca-Cola will be laid off.

Also, Sen. Bam said that several BPOs are relocating, aborting expansion, or re-shoring workers due to the effects of the TRAIN Law.

To safeguard livelihood for Filipinos working in the business process outsourcing (BPO) industry, Sen. Bam pushed for the retention of a special tax rate for regional operating headquarters and regional headquarters (ROHQs/RHQs) during the TRAIN’s period of amendments. However, the provision was vetoed by Malacanang, much to the dismay of the BPO sector.

The veto will lead to an increase in cost of doing business, which will affect the status of 5,000 workers and will prevent other BPOs from setting up shop to provide more jobs for Filipinos.

 “These RHQs invested in the Philippines because of these tax incentives, which were suddenly removed by our government. Bakit pa sila mamumuhunan dito at paano pa sila magtitiwala sa gobyerno,” Sen. Bam questioned.

Among those who aborted expansion plans upon the removal of the preferential tax rate is a large global outsourcing hub for technology services. The expansion would have provided up to 400 fresh job to Filipinos.

Sen. Bam also mentioned that a big ROHQ will close its operations in the Philippines this coming year. 

Instead of focusing solely on revenue-generation, Sen. Bam said the government must work with the private sector to boost job creation and strengthening job security, especially with rising prices due to their new tax policies.

 “Importanteng ipatupad na ang cash transfer, pero pansamantalang solusyon lang ito. Livelihood, jobs, sapat na kita para sa bawat pamilyang Pilipino ang nararapat na prayoridad ng pamahalaan,” said Sen. Bam.

Sen. Bam is the former chairman of the Senate Committee on Trade, Commerce and Entrepreneurship and passed several measures to provide livelihood by supporting small, local businesses in the country. He is also the principal sponsor of the free college law passed last year.

Sen. Bam voted no to the ratification of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

Sen. Bam repeats call for immediate financial assistance for Filipinos amid rapid rise in prices

Alarmed by the rapid increase in prices of goods and services due to the Tax Reform Acceleration and Inclusion (TRAIN) Law, Sen. Bam Aquino renewed his push for the immediate implementation of financial assistance to poor Filipinos. 

“This is the reason I keep pushing for the immediate implementation of financial assistance. Alam na namin ang kahihinatnan ng tax reform ng nagbotohan, kaya ako kumontra sa TRAIN,” said Sen. Bam.

 Sen. Bam’s pronouncement came after the country’s inflation rate reached four percent, the highest in four years, due to the effects of the TRAIN Law. 

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.   

 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.  

 “The government is failing the Filipino people, especially the impoverished. We must implement a sufficient financial assistance program immediately to cushion the blow of TRAIN and the price increases,” Sen. Bam said.   

 Recently, Sen. Bam filed Senate Resolution No. 597, urging the appropriate Senate committee to scrutinize the implementation of the unconditional cash transfer to ensure that it is sufficient to cover the increase in prices of goods and other services. 

 Sen. Bam is also calling on the National Economic Development Authority (NEDA) to check if household incomes are enough to absorb these rising costs. 

“Gusto rin natin alamin kung sapat na ang 200 pesos kada buwan na cash transfer, lalo na ngayong tumataas na rin ang presyo ng kuryente at bigas,” said Sen. Bam.   

Sen. Bam is the former chairman of the Senate Committee on Trade, Commerce and Entrepreneurship and passed several measures to provide livelihood by supporting small, local businesses in the country. He is also the principal sponsor of the free college law passed last year.  

Sen. Bam voted no to the ratification of the Tax Reform Acceleration and Inclusion (TRAIN) Law.

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

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.

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