(Eagle News) — President Rodrigo Duterte on Wednesday, May 30, defended the implementation of the Tax Reform for Acceleration and Inclusion law, saying money was needed to fund government programs.
“Inflation is always there. There are many reasons, but actually, one of them is TRAIN. But I need money also to run the country. If you do not give it, fine,” Duterte said.
The President made the statement after several senators called for the suspension of the law, following what they said was its effect on the prices of goods and on inflation.
Senator Grace Poe, in particular, said inflation has breached the 4-percent mark, and could reach 6 percent in July.
But the Department of Finance has rejected calls for the suspension, saying there were other factors that affect inflation such as peso depreciation.
The DOF added, however, that the law would be suspended if the price of Dubai crude went up at $80 per barrel for three consecutive months.
Under TRAIN, higher excise taxes are imposed on fuel, cars, and sweetened beverages to help fund the government’s infrastructure and social services programs.
Taxpayers, however, enjoy cuts in income tax under the law, according to the government.