Senate targets approval of tax reform bill by November
By Mario M. Banzon
THE SENATE hopes to pass on second and third reading the proposed Senate version of the tax reform bill when Congress resumes its session on Nov. 13.
“We have closed the period of interpellations and moved to the period of amendments which hopefully will be done by Nov. 15,” said Senator Juan Edgardo M. Angara, sponsor of the bill, in a text message to BusinessWorld on Sunday, Oct. 8.
The previous plan was to approve the proposed Senate version, Senate Bill No. 1592 or the Tax Reform for Acceleration and Inclusion (TRAIN) bill, before the chamber would go on recess on Oct. 13.
Mr. Angara said: “Nagbago na ngayon ang kalendaryo natin. Ang TRAIN Nov. 13, 14, 15 kung kailangan 16, ’yun ang period for amendments. Ang target natin before mag-end ang November maipasa na kasama na ang bicam (We’ve changed our calendar. TRAIN [is scheduled] on Nov. 13, 14, 15, and if needed [Nov.] 16. The target is to have it approved by the end of November, including the bicameral conference).”
Senate President, Senator Aquilino L. Pimentel III, for his part, told reporters last Friday: “So sometime in December, approved, signed by the President, hence, effective Jan. 1, 2018, so kaya pa (so we can make it).”
Mr. Angara said amendments discussed during the interpellation would be considered “along with the repercussions.”
“Definitely, revenue will be upped by increasing VAT efficiency and decreasing leakages,” he said.
During the interpellation on TRAIN last Wednesday, Oct. 4, until past midnight of Thursday, Senate President Pro Tempore Ralph G. Recto asked Mr. Angara to take into consideration the administration’s infrastructure plan under its “Build, Build, Build” program.
“TRAIN bill revenues represent around 17% of the ‘Build, Build, Build’ program, so it is complementary and not the bulk of the government’s infra spending through targeted spending for education, health, infrastructure, and other public goods that will pay dividends down the road,” Mr. Angara had said.
He also said it is “equally crucial” to cushion the impact of the proposed tax reform on the poor.
The Department of Finance (DoF) has estimated that the proposed Senate version of TRAIN will only generate P59.9 billion in revenues, much lower than the P157.2 billion in the DoF’s original proposal and P133.8 billion in the House version of tax reform.
