Tuesday, January 23, 2018

Zarate: Under TRAIN, CEOs earn extra P89K by yearend, while poor lose P650

Bayan Muna partylist Rep. Carlos Isagani Zarate hit Trade and Industry Secretary Ramon Lopez for “misleading the public and desperately covering-up the harsh effects of the Duterte administration’s regressive tax reform measure.”

“Instead of blaming critics of the Tax Reform for Acceleration and Inclusion (TRAIN) Sec. Lopez should instead stop misleading the public. He is trying to justify the unjustifiable and defending the indefensible negative effects of this run-away TRAIN,” Zarate said in a statement.

“Truth be told, it is the administration that is not being objective and honest on the negative and wrecking effects of the TRAIN on the poor majority of Filipinos. Secretary Lopez and other secretaries are spreading fake news on the TRAIN,” the Makabayan lawmaker said.

Zarate cited a study by the independent think tank IBON Foundation debunking the government’s claim that 6.8 million would benefit from the TRAIN.

“In reality only 4.5 million would benefit from TRAIN, while it would adversely affect 15.2 million poor Filipinos, especially with the domino effect that would be created by the ‘price shock’ on petroleum prices, particularly Gasoline = P2.97/litre, Diesel = P2.80/litre and Kerosene = P3.36/litre,” he said.

“In fact, sa ilalim din ng TRAIN , ang isang tao na kumikita ng P5,000 ay mababawasan ng P650 kada taon pero ang CEO ay madadagdagan pa ang kikitain nito ng P89,000 kada taon,” Zarate said.

He did not explain how he arrived at the calculation.

Under TRAIN, those earning P250,000 or less will no longer be levied personal income tax, while those earning more are taxed progressively higher according to their income.

“Hindi kayang ikubli at pagtakpan ng pamahalaan ang katotohanan na mas marami talaga ang tatamaan ng masamang epekto ng TRAIN kesa sa makikinabang dito,” Zarate added.

“For the affected majority of our people, the TRAIN is an anti-poor measure that is further wrecking their lives and there is other way to describe it,” Zarate said.

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