(Eagle News) — Malacañang on Thursday said both the rich and poor would benefit from the newly-enacted Tax Reform for Acceleration and Inclusion (TRAIN) Act, contrary to the claims of some critics.
Presidential Spokesperson Harry Roque said in a press conference in Davao that the proceeds of TRAIN would fund the government’s massive Build, Build, Build programs.
Roque said that under the program, the country would have better infrastructure, which translates to a more efficient delivery of services.
The program will also generate more jobs, Roque said.
Roque assured that while the adjustment of excise taxes under TRAIN would raise the prices of some commodities, the increase would be minimal and temporary.
According to the Palace spokesman, there would “only” be a 0.4-0.7 percentage point increase in inflation during the first year of implementation of the law, with the impact tapering off over time, based on estimates by the Department of Finance, Bangko Sentral ng Pilipinas, and National Economic and Development Authority.
He also said that instead of looking at the short-term “minimal” price increases, the citizenry must view persistent poverty and high inequality as resulting from the systemic inability of the poor to participate in society actively and productively.
Only recently, Sonny Africa, executive director of the research group IBON Foundation, described TRAIN as a scourge rather than as a gift to the people.
He said that the millions of Filipinos who are not getting any increase in take-home pay would have to deal with more expensive food and drinks, higher cooking expenses and jeepney and bus fares, among others, thus worsening their plight.