- Malacañanang Palace dismissed claim only rich will benefit from tax reform law
- Presidential spokesman said higher prices for basic commodities is temporary and will taper off
- He also said increased revenues will lead to more jobs, better infrastructure and services for poor
MANILA, Philippines – Malacañanang Palace has downplayed non-profit IBON Foundation’s claim that only the rich will benefit from the Tax Reform for Acceleration and Inclusion (TRAIN) law; saying it will benefit everyone from all demographics.
“Contrary to the claim of IBON Foundation, the rich and the poor would both benefit from the newly enacted Tax Reform for Acceleration and Inclusion (TRAIN) Act,” the PCOO quoted Presidential Spokesperson Harry Roque as saying.
While Roque admitted that the new setup will raise the prices for some basic commodities, he assured the public that this is temporary and will eventually level out.
“While adjusting excise taxes would raise prices of some commodities faced by consumers, we assure everyone that it will be minimal and it will be temporary. The Department of Finance, the Bangko Sentral ng Pilipinas, and the National Economic and Development Authority estimate only around 0.4-0.7 percentage point increase in inflation during the first year of implementation with the impact tapering off over time,” he said.
Roque also said the revenues generated by the new law will eventually lead to more more jobs, better infrastructure and socio-economic services for the poor.
“The passage of the first package of the Comprehensive Tax Reform Program (CTRP) helps address this. Much more than providing higher take home pay to wage earners, TRAIN would also mean more jobs, better infrastructure, and more efficient delivery of services from massive investment in infrastructure and on people,” he said.
“These investments would increase the productive capacity of the economy, thereby creating more and better jobs and result in high quality education, better health services, and adequate social protection so that everyone, especially the poor, is accorded with equal economic opportunities towards prosperity,” Roque added.