I am the second speaker of the affirmative side speaking under the beneficiality of the

proposition.

I STRONGLY AGREE THAT THE TRAIN LAW MUST BE SUSPENDED DUE TO THE FOLLOWING
REASONS:

 RISE OF INFLATION RATE

Inflation rate hits a five-year high of 4.5 percent last month, which was 1.1 points higher
than the January 2018 figures when the TRAIN law was passed. Other factors, such as
the rise in global oil prices and the better collection of cigarette excise taxes drove
inflation to 4.5 percent in April this year. What does this mean? Only one thing, the
increase of prices in oil, mineral and other basic commodities.

 TRAIN LAW HELPS NO POOR

According to Senator JV Ejercito, renewing his call to suspend the increase in excise tax
on fuel products “in order to protect the interests of consumers and the public.” While
we understand the need of government to increase revenues, we need to prioritize the
protection of the public who are bearing the brunt of these high prices which is negating
the increase in take-home pay brought about by lower income taxes,” The negative
effect of the higher inflation rate is more felt by the bottom 30 percent of Filipino
households. One resident told in media that having not to complete 3 meals a day might
be their only choice. If you think, poor people benefits, they aren’t. The TRAIN law may
be a tool to increase government revenue but does it go hand-in-hand with the
government’s anti-poverty efforts?”

 TRAIN LAW STILL NEEDS TO UNDERGO SERIES OF STUDIES

According to Vice President, Leni Robredo, TRAIN Law should undergo a series of
studies. Its causes and results must be analyzed to track its advantages and
disadvantages to find solutions to its disadvantages and to work on more to its
advantages. With further studies about the said law, its implementation might run
smoothly and reach its desired results, one of which is the achievement of country’s
modest improvement.

The second speaker of the affirmative side has already spoken and I am now ready for the
interpellation.
Though students going to a free tuition university which is part of the government’s “Build Build Build”
Program, allowances commonly expended in transportation fares, meals and personal monthly grocery is
another “sakit sa bulsa” due to TRAIN Law’s implementation. A discount given for a student in
transportation fare is not sustainable to the expenses spend on basic commodities. I ask you the same
question with what our Senator JV Ejercito asked, “

The idea of the tax reform was to decrease the personal income tax, giving the people more purchasing
power.

However, he said, the rising prices of commodities would negate the positive impacts of TRAIN law on
income.

Ejercito said that the negative effect of the higher inflation rate is more felt by the bottom 30% of
Filipino households.

The TRAIN law may be a tool to increase government revenue but does it go hand-in-hand with the
government's anti-poverty efforts?"

In a statement, he said he was renewing his call to suspend the increase in excise tax on fuel products
“in order to protect the interests of consumers and the public.”

“While we understand the need of government to increase revenues, we need to prioritize the
protection of the public who are bearing the brunt of these high prices which is negating the increase in
take-home pay brought about by lower income taxes,” Ejercito said

Leaders of the Scrap TRAIN Network-Panay cited the rise in the price of diesel used by public utility
vehicles—from P33 to P34 per liter in December 2017 to P43 to P44 this week, or a P10 increase.
The group said that due to the increase in the prices of oil products and other commodities, a Filipino
farmer’s family was now incurring an additional expense of P2,644 and a worker’s family P3,640
monthly.

“While we recognize that taxes fuel the country’s economy, we should implement instead a progressive
kind of taxation, not the regressive kind,” the group said in a position paper, adding that the rich should
be taxed more than the poor.

Taxes should be higher on the so-called “sin products,” such as alcoholic beverages and cigarettes.
Sen. Ejercito bats for suspension of TRAIN law

SENATOR JV Ejercito has called on the government economic managers to suspend the Tax Reform for
Acceleration and Inclusion (TRAIN) law currently being implemented to arrest the rising inflation rate.

Ejercito made the call after media reported that the headline inflation rate accelerated to 4.5 percent
year-on-year in April, which was the fastest in more than 5 years. The full-year target is 2-4 percent.

"It might be wise to consider suspension of the TRAIN law if the trend continues to breach the inflation
threshold," Ejercito said.

Ejercito was already alarmed when the March inflation rate reached 4.3 percent, from the revised 3.8
percent in February.

"The economic managers should seriously review the TRAIN law given the upward trend of the numbers.
They should assess whether the increase in inflation is still manageable. Otherwise, implementation of
TRAIN 1 should be suspended and re-studied," he said.

During the Senate deliberation of the TRAIN, both the Department of Finance and the National
Economic Development Authority had claimed that the measure would likely raise the inflation level by
(just) 0.7 percent this year.

The two agencies had even assured that the inflation rate would still be within the projected 2-4 percent
target.

"Pero mukhang ang layo yata ng sinabi nila noon sa mga numero na lumalabas ngayon," Ejercito noted.

He added: "My worst nightmare about the TRAIN law has become a reality. I had warned this before
that the TRAIN is inflationary in nature. The common people may not know what inflation is, and they
don't care. What they do know and what they care about is that prices of food and other necessities
have all gone up."

The idea of the tax reform was to decrease the personal income tax, giving the people more purchasing
power.

However, he said, the rising prices of commodities would negate the positive impacts of TRAIN law on
income.

Ejercito said that the negative effect of the higher inflation rate is more felt by the bottom 30% of
Filipino households.

"Parang mas lalo yatang humirap ang kalagayan ng ating mga kababayan. The TRAIN law may be a tool
to increase government revenue but does it go hand-in-hand with the government's anti-poverty
efforts?" he said.
Sen. Grace Poe and other senators on Friday joined labor organizations in calling for the suspension of
the full implementation of the tax reform law amid growing complaints of soaring prices of basic
commodities from consumers and transport groups.
Poe, chair of the Senate committee on public utilities, on Friday said the excise tax component of the
Tax Reform for Inclusion and Acceleration (TRAIN) law specifically should be suspended because all
goods were now affected by price hikes.
She was supported by Senators Nancy Binay and JV Ejercito.
ADVERTISEMENT
Sen. Bam Aquino, who had voted against the TRAIN law, has filed a bill which seeks to roll back the
excise tax on fuel when the average inflation rate surpasses the annual inflation target over a three-
month period.
Poe, who spoke at her committee’s hearing on the impact of the government’s tax reform program in
Iloilo City, said she would ask the Department of Finance and other government agencies to closely
study the suspension of excise taxes on fuel.
Family expenses
Leaders of the Scrap TRAIN Network-Panay cited the rise in the price of diesel used by public utility
vehicles—from P33 to P34 per liter in December 2017 to P43 to P44 this week, or a P10 increase.
The group said that due to the increase in the prices of oil products and other commodities, a Filipino
farmer’s family was now incurring an additional expense of P2,644 and a worker’s family P3,640
monthly.
“While we recognize that taxes fuel the country’s economy, we should implement instead a progressive
kind of taxation, not the regressive kind,” the group said in a position paper, adding that the rich should
be taxed more than the poor.
6-percent inflation?
Transport leaders said jeepney drivers had to work 16 hours, or four hours more than before just to
meet their daily needs.
ADVERTISEMENT
Poe urged the immediate suspension of the law after inflation breached the 4-percent mark.
The inflation rate hit 4.3 percent in March and 4.5 percent in April. Poe said this could reach 6 percent in
July.
Ejercito, who voted to pass the TRAIN law, said the Senate version of the bill had provided for lower
excise taxes on fuel.
Taxes should be higher on the so-called “sin products,” such as alcoholic beverages and cigarettes.
In a statement, he said he was renewing his call to suspend the increase in excise tax on fuel products
“in order to protect the interests of consumers and the public.”
“While we understand the need of government to increase revenues, we need to prioritize the
protection of the public who are bearing the brunt of these high prices which is negating the increase in
take-home pay brought about by lower income taxes,” Ejercito said.
Wage hike clamor
Renato Magtubo, chair of the labor group Partido Manggagawa, said the impact of the TRAIN law on
prices should be enough reason for the regional wage boards to hold summary proceedings on pay hikes
even without any petition being filed.
“The regional wage boards need not wait a year to lapse from their last-issued wage orders before they
can conduct public hearings on wage petitions. In fact, they can even act motu proprio on this issue on
the basis of a supervening event like this one,” Magtubo said.
Magtubo’s group also supports a national minimum wage rather than the current regional wage system.
Kilusang Mayo Uno has made a similar call, demanding a P750 national minimum daily wage for private
sector workers and a monthly pay of P16,000 for government employees.
The daily minimum wage ranges from a low P256 (in the Ilocos region) to P512 (in Metro Manila).
The Trade Union Congress of the Philippines has urged the government to lower electricity rates to ease
the impact of the TRAIN law. —WITH REPORTS FROM NESTOR P. BURGOS JR., JOVIC YEE AND JULIE M.
AURELIO

Sen. Grace Poe. (File photo by CATHY MIRANDA / INQUIRER.net)

ILOILO CITY — Three senators on Friday called for the suspension of the implementation of Republic Act
No. 10963 or the Tax Reform for Acceleration and Inclusion (Train) law as consumers and transport
groups complained of soaring prices of commodities.
In a hearing of the Senate committee on public utilities here, Sen. Grace Poe, committee chair said the
full implementation of the laws especially excise taxes on fuel should be suspended because all products
are affected.
Her call was supported by committee members senators Nancy Binay and Joseph Victor “JV” Ejercito.
ADVERTISEMENT
Poe said the committee would ask the Department of Finance and other government agencies to closely
study the suspension of excise taxes on fuel due to the continuous increase of the prices of oil products.
In the hearing, leaders of the Scrap Train Network-Panay cited an increase in the price of diesel, which is
widely used by public jeepneys, from P33 to P34 per liter in December 2017 to P43 to P44, as of May 24
or a P10-peso increase.
Due to the increase in prices of oil products and commodities, a family has incurred an additional
expense of P2,644 monthly for farmers and P3,640 for workers.
“While we recognize that taxes fuel the country’s economy, we should implement instead a progressive
kind of taxation not the regressive kind. Meaning, those with higher income should be taxed more while
those with lower income should be taxed less,” the group, which includes the Panay Consumer’s
Alliance and Bagong Alyansang Makabayan, said in a position paper submitted to the committee.
Transport leaders said public jeepney drivers have to extend their work time to 16 hours from the
previous 12 hours to meet their daily needs due to the higher cost of living.
As part of safeguards, Poe said the implementation of the law could be suspended when the price of oil
hits $80 per barrel in the world market.
She said there was an urgency to suspend the law because inflation has breached the 4-percent mark.
The inflation rate hit 4.3 percent in March and 4.5 percent in April.

Poe said this could reach 6 percent in July.

While admitting that he voted for the passage of Train, Ejercito said the Senate version of the bill had
provided for lower excise taxes on fuel. He said taxes should be higher on the so-called “sin products,”
including alcoholic beverages and tobacco products.
He said the additional safeguard of an automatic suspension of the implementation of the law when the
inflation rate reaches 4 percent was removed in the final version.
“We are hoping that the economic managers will reconsider (the suspension of the law). We do not
want a capital flight (to happen),” he told reporters after the hearing at the Iloilo provincial capitol.
Militant groups led by Bayan held a picket in front of the provincial capitol to call for the scrapping of the
law.

Read more: http://newsinfo.inquirer.net/994311/3-senators-call-for-suspension-of-train-

law#ixzz5Nokpvgjp
Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook
XXX

1. I am so glad u brought it up coz that's the most vulnerable point right now.
2. It's wonderful u think that way, but sorry to burst your balloon…
3. Even if I tried to agree with you right now, what u say is blatantly outrageous..
4. Please do check your sources and make sure they're reliable enough!
5. With all due respect, if the opponent team could just hear themselves out.
In cross-examination:

 “Thank you for answering your own question.” (it’s true a lot of times)
 “How is the judge supposed to weigh your analogy/personal example against our
evidence/comprehensive peer-reviewed study?”
 “What I fail to understand is how you fail to understand.”
 Usually a standard opening statement for our law group starts with
 “Now let me tell you the truth, the full truth, and nothing but the truth, filling in the holes that
the other side conveniently forgot”.
 At times we would end with
 “Don’t let the opposing team muddle your minds with their half truths, and half lies”.
 Or add in a small joke:
 “Ladies and gentlemen, you heard an entertaining story from the other side. A cheesy story-
made of swiss cheese. And as you know, Swiss cheese just wouldn’t be swiss cheese without the
holes. Now allow me to tell you the full story…” etc.

"It is such a beautiful drama that team opponent is bringing, but too bad this is a debate tournament not
a storytelling contest"

Your actions are speaking so loudly, I cannot hear what you are saying.
1. What are the benefits of tax reform? Where will the government use the additional revenues to be
collected under the Tax Reform for Acceleration and Inclusion (TRAIN) law?

As reiterated by the Department of Finance (DOF), TRAIN is the first step to once and for all correct our
unfair, complex, and inefficient tax system. After 20 years, we are finally adjusting and updating the
personal income tax rates which burdened mostly our ordinary employees earning above minimum
wage up to P500,000 in annual gross salary and were being taxed up to 32% under the old tax system.

But as I have said in my previous interviews, it's not all gains, as there are sacrifices we all have to make
since the government needs to raise additional revenues to fund massive infrastructure projects and to
improve public services. (READ: EXPLAINER: How the tax reform law affects Filipino consumers)

Not more than 70% is earmarked for infrastructure projects such as, but not limited to, the Build, Build,
Build program.

Not more than 30% will be used to fund social mitigating measures like the additional P200
unconditional cash transfer for the poorest 10 million households, and other social welfare benefits and
programs.

2. Are we not supposed to improve first the tax administration before imposing new taxes? Were
there administrative reforms included under the TRAIN law?

Under the leadership of Bureau of Internal Revenue (BIR) Commissioner Caesar "Billy" Dulay, several
administrative reforms have been implemented – from the continuous streamlining of processes and
documentary requirements for registration, to the processing of tax clearance, and review of all pending
audit cases which is perceived to be a source of corruption.

In fact, in partnership with the Center for Strategic Reforms of the Philippines (CSR Philippines), the BIR
has launched the Seal of Honesty (SOH) Certification Program, and has released the Tax Guide for Small
Businesses to promote tax education and reform, thus upholding integrity and honesty in paying taxes.
Visit www.sealofhonesty.ph for more information.

Under the TRAIN law, there are administrative reforms included which will simplify compliance for
taxpayers:

1. From a 12-page income tax return (ITR), it has been reduced to only 4 pages.

2. The deadline for the filing of 1st quarter ITRs was moved from April 15 to May 15 effective 2018.
However, deadline for filing Annual Income Tax Return shall still be on or before April 15.

3. The second installment of annual income tax was moved from July 15 to October 15.
 4. Taxpayers with gross annual sales/receipts amounting to P3 million and below are exempt from
having their books of accounts (and financial statements) audited by independent Certified
Public Accountants.

5. Use of relevant and appropriate set of bookkeeping records duly authorized by the Secretary of
Finance, and issuance of receipts at the point of sale valued at P100 or more.

3. For an ordinary employee like me (a call center agent) earning a monthly salary of P21,000, what
benefits can I expect from the TRAIN law? When would it be effective?

The key component of the TRAIN law is the lowering of personal income tax and exempting the first
P250,000 income of all individuals or a P20,833.33 monthly salary.

Here's the computation of your higher take-home pay under the TRAIN law:

This is effective January 1, 2018 which means all employees must receive higher take-home pay starting
this month.

4. For microentrepreneurs like me (a sari-sari store owner) earning annual gross sales of P500,000,
how much tax will I pay? Will there be any tax savings or benefit from the TRAIN law?

Aside from ordinary employees, micro and small businesses will also benefit from the TRAIN law. Other
than the lower personal income tax, there is an optional 8% flat rate in lieu of income and percentage
tax for those with gross sales/receipts amounting to P3 million and below.

Here's the computation of your tax savings under the TRAIN law:

5. For mixed income earners such as a call center agent with a sari-sari store (refer to above
information on item nos. 3 & 4), how much will they pay considering they have both compensation
and business income?

For mixed income earners, you have an option to consolidate your compensation and business income
subject to the revised personal income tax table, or use the optional 8% flat rate if your gross
sales/receipts do not exceed the P3-million value-added tax (VAT) threshold.

Here's the computation of your tax savings under the TRAIN law (using compensation income in no. 3
and business income in no. 4):

6. It's all over the news that fuel prices have gone up due to excise tax. What are the new costs of
fuel?
The Department of Trade and Industry (DTI) and Department of Energy (DOE) have been strictly
monitoring the increase in prices to sanction retailers who may be profiteering or imposing an
unnecessary markup on old stocks and other unaffected goods.

Here's the list of prices as of January 12:

7. How about the excise tax on automobiles under the TRAIN law? What are the new rates?

Here's the new excise tax on automobiles:

8. With the higher excise taxes on cigarettes and sugar-sweetened beverages, how much will those
cost now?

An increase of P32.50 for the first 6 months of 2018 (January 1 to June 30) and P6 per liter for those with
caloric and non-caloric sweeteners, and P12 per liter for those with high-fructose corn syrup like soda
will be imposed under the TRAIN law.

Here are the new prices as of January 12:

9. Is it true that due to higher excise taxes, all prices of basic commodities will be affected? Will this
offset the increase in take-home pay? I hope you can explain this further as many stores and gasoline
stations have drastically increased their prices. What can we do if there are those who are abusing or
using the TRAIN law to make more profit?

The DTI has released a bulletin on suggested retail prices under the TRAIN law. See below:

10. As the most prominent tax advocate, how can you help us understand the TRAIN law? Where can
we get more information? How can we comply properly given the new rules and regulations to be
implemented by the BIR? Please help us as most of us are confused and afraid that we will face more
penalties if we don’t get this right immediately.

Our social enterprise started the "Catching the TRAIN Seminar" every Friday of January 2018. This is a
training seminar offered by the Tax Whiz Academy in partnership with CSR Philippines. Copies of the
Free Tax Guide and Komiks are also given to all participants. For reservation, sign up through this
link: http://bitly.com/TRAINSeminar.

We are also launching the TRAIN handbook this week. Just follow us on Facebook –
www.facebook.com/consult.acg and www.facebook.com/AskTheTaxWhiz – for updates.

With red tape and high compliance cost still burdening our countrymen, it is time to find better
solutions through developments in technology. In partnership with JuanTax, the Tax Whiz App is a game-
changing platform that will serve as a 24/7 online helpdesk for taxpayers, specifically for those who are
self-employed and professionals.
Sign up now for the Tax Whiz App and enjoy the ease of complying with the new tax law, rules, and
regulations. Register here: http://app.acg.ph. – Rappler.com

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2016 Outstanding Persons of the
World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the
Philippines (TOYM), an Asia CEO Young Leader of the Year, and founder of the Abrea Consulting Group
and Center for Strategic Reforms of the Philippines (CSR Philippines). He currently serves as Adviser to the
Commissioner of Internal Revenue of the Philippine government on tax administration reform in
promoting inclusive growth. Follow Mon on Twitter (@askthetaxwhiz) or visit his Facebook page. You
may also email him at consult@acg.ph.