Senator Nancy Binay. FILE PHOTO
Sen. Nancy Binay on Wednesday called on the Department of Budget and Management (DBM) and other government agencies to fast-track the release of funds and implementation of programs meant to mitigate the impact of the tax reform law, especially to poor families in the country.
“Tinatawagan ko po ang [DBM], kasama ang ibang government agencies, na bilisan ang paglalabas ng pondo at ipatupad ang mga guidelines at programang pampagaan ng epekto ng tax reform law sa ating mga mahihirap na kababayan,” Binay said in a statement.
(I call on the DBM and other government agencies to fast-track the release of funds and implementation of the guidelines and programs meant to mitigate the effects of the tax reform law to poor families.)
Binay said that the rise in excise taxes on petroleum products and coal brought by the Tax Reform for Acceleration and Inclusion (Train) law could lead to higher prices of basic goods and electricity.
“Ngayong ipinapatupad na ang batas na ito, sana ay mas mabilis din ang pagtugon ng ating pamahalaan sa mga pangangailangan ng ating mga kababayang tatamaan ng inaasahang pagtaas ng presyo ng bilihin at elektrisidad,” she added.
(Now that the law has been implemented, I hope that the government should immediately address the need of the poor families that would be affected by the increase of prices and electricity.)
Critics of the Train Law said that the “biggest loser” in the implementation of the measure are the poor, which would be burdened by the increase of prices of goods and services brought about by the additional excise tax on oil and gasoline.
While exempting about 7 million employees earning P21,000 below from income tax, the Train Law imposes additional P8 per liter this year and P2 for the next year.
The increase, critics said, will spark a domino effect on the prices of good and services.
Binay said a total of P28.8 billion had been allocated in the 2018 national budget to offset the effects of the new tax measure.
The poorest 10 million Filipino households will receive a cash aid of P200 a month this year to soften the shock of increased prices of goods. The government has lodged P24.5 billion in the Land Bank of the Philippines (LBP) for this unconditional cash grant (UCT).
The cash grant will increase to P300 a month in 2019 and 2020.
“Kung kayang ipalabas ang pondo ng UCT by the end of January or first week of February ay mas makakatulong ito sa ating mga kababayan,” Binay said.
(It would greatly help the people if the release of the UCT fund would be released by the end of January or first week of February.)
Another P2 billion has been allocated to the National ID System program of the Philippine Statistics Authority (PSA), meant to limit leakages in the delivery of social services and ensure that services reach the intended recipients.
“Ang agarang implementasyon ng National ID program ay magsisiguro na yung mga kumakalam na tiyan ng mga mahihirap na beneficiaries ng cash grants ay tunay na malalamnan,” Binay said.
(The immediate implementation of the National ID program would ensure that the empty stomachs of the poor beneficiaries of cash grabts would be filled.)
The lawmaker said that the Senate is ready to take on any proposal to ensure the removal of the quantitative restrictions on rice following DBM’s pronouncement that the rise in inflation could be countered by lowering rice prices through policy reforms.
“Sinasabi na ang Train ay isa sa pinakamagandang regalo ng pamahalaan sa mga Pilipino dahil sa mas mataas na sweldo, pero mas magandang regalo ang magaan na epekto ng batas sa mga bulsa ng ating mga kababayan, lalo na sa mga mahihirap,” she added.
(They say that Train is one of the best gifts that the government can give to the Filipinos because of increase in take-home pay. But the gift would be better if its impact would be mitigated, especially to the poor.)
The new tax policy is facing legal question before the Supreme Court as the measure was allegedly ratified by the House of Representatives without a quorum. /cbb