Andanar admits new tax reform law will lead to more expensive goods

Camille Elemia

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Andanar admits new tax reform law will lead to more expensive goods
'So, tataas 'yung bilihin. [Pero] hindi ba nila naisip na dahil dito...ay tataas din po ang koleksiyon ng ating bayan?' says Presidential Communications Secretary Martin Andanar

MANILA, Philippines – Presidential Communications Secretary Martin Andanar admitted that the newly signed Tax Reform for Acceleration and Inclusion (TRAIN) law would lead to higher prices of commodities.

Andanar was reacting to criticism that while Filipinos would get higher take-home pay, this would just be spent on more expensive fuel and other products. (READ: Higher take-home pay but pricier cars, fuel, tobacco by 2018)

“So, tataas ‘yung bilihin. [Pero] hindi ba nila naisip na dahil dito sa TRAIN or Tax Reform for Acceleration and Inclusion ay tataas din po ang koleksiyon ng ating bayan, ng ating gobyerno na nangangahulugan na mayroon ho tayong pondong pagkukunan?” Andanar said in a radio interview on Saturday, December 23.

(So, the prices of commodities will increase. But don’t they realize that because of TRAIN, the revenue collection of our government will also increase which means we will have more funds for programs?)

He added that higher government revenue is a good thing because there would be more money to spend and more jobs could be created.

“Oo, doon sa mga malalaking infrastructure projects ng gobyerno – mga highway, footbridge, mga subway… lahat po, airport. So kung marami hong proyekto na na-implement na ngayong 2018, kasi 2018 po talaga ‘yung target na ma-implement eh, ay babaha ho ng trabaho. Ngayon, ‘pag may trabaho ‘yung tao, gagastos ‘yung tao, iikot ang ekonomiya,” Andanar said.

(Yes, for the big infrastructure projects of the government like highways, footbridges, subways, everything, including airports. So if many projects would be implemented in 2018, more jobs would be created. With more jobs, people would have higher spending power, the economy will thrive.)

Under the new law, Filipinos earning P21,000 and below would be exempt from paying income taxes starting January 1, 2018. Higher excise taxes, however, would be imposed on fuel, sugar-sweetened beverages, coal, and cars – which critics said would consequently raise the costs of other commodities and transportation.

President Rodrigo Duterte signed TRAIN or Republic Act No. 10963 – a priority measure of his administration – at Malacañang Palace last Tuesday, December 19. (READ: Duterte vetoes parts of tax reform law)

Revenues from the tax reform measure are meant to fund the Duterte government’s Build, Build, Build infrastructure program and socioeconomic programs. (READ: EXPLAINER: What’s inside the bicam-approved tax reform bill?) – Rappler.com

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Camille Elemia

Camille Elemia is a former multimedia reporter for Rappler. She covered media and disinformation, the Senate, the Office of the President, and politics.