THE FINANCE DEPARTMENT said that it accepts the changes introduced to the tax reform program, for which it drafted the legislation, with the proceeds expected to be sufficient for the government’s infrastructure program.

The bicameral conference committee approved a number of other provisions of the Tax Reform for Acceleration and Inclusion (TRAIN) first package which were not originally proposed by the DoF, including the raising of the excise taxes on coal, minerals, and tobacco, while imposing a new tax on cosmetic surgery. Congress also increased the tax on documentary stamps, foreign currency deposit units, and capital gains on sales of unlisted stock.

“We did not propose it in package one. However, we respect the right of legislature to introduce taxes as they see fit, it’s part of the law and we accept that,” Finance Secretary Carlos G. Dominguez III told reporters yesterday as the department conducted a ceremonial burning of Mighty Corp. cigarettes in Bulacan.

He said some of the measures inserted in package one were actually planned by the DoF for later tax reform packages.

The adjustments to capital gains were scheduled for package four, while the increase in tobacco and coal taxes were scheduled for the fifth package.

Finance Assistant Secretary Mark Dennis Y.C. Joven of the Revenue Operations Group said “some changes” are thus warranted in future tax reform packages.

Mr. Dominguez meanwhile welcomed the additional revenue in the first year of tax reform, which he estimated at P130 billion.

“The P130 billion that we expect from TRAIN, the net revenue effect is certainly very close to the bill, that was passed in the House. So we are very pleased that the legislature has given us the wherewithal to begin a really serious infrastructure program,” Mr. Dominguez said.

Some 70% of the program’s additional revenues are earmarked for the government’s infrastructure drive — on which it plans to spend some P8.4 trillion over the medium term.

“We are now ready for the TRAIN to leave the station,” Mr. Dominguez said.

Mr. Joven said that the tax agencies are ready to implement the TRAIN measures by Jan. 1 through revenue regulations.

“They are being prepared right now, and it will be implemented on time,” Mr. Joven said. — Elijah Joseph C. Tubayan

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