Train wreck looming?

While one of the goals of President Rodrigo Duterte’s administration in enacting a tax reform law is inclusive prosperity (as shown in the name of the law “Tax Reform for Acceleration and Inclusion” or Train), we have a hard time determining who fits into the new law’s circle of inclusion.

Is the commuter included? The Cebu Integrated Transport Service Cooperative (Citrasco) is petitioning for fares for public utility jeepneys to be raised to a minimum of P12.50.

Is the minimum wage earner included? Prices of commodities are expected to rise further with higher excise tax on fuel. As it is, these prices already rise with the normal surges in the price of oil in the world market.

Are members of the poor household included? As economist Fernando Fajardo pointed out, their income is already below their spending needs. This is the reason they are mired in debt. Will higher prices for goods and services suddenly put them in the ranks of the better off?

Are beneficiaries of unconditional cash transfers included? The law stipulates that money should be given to households adversely affected by the law. Will not this provision encourage a culture of dependency?

Citing the Action for Economic Reforms, Prof. Emeritus Solita Collas-Monsod of the University of the Philippines made public this list of funding needs of various Philippine sectors in the year ahead:

1. public utility vehicle modernization (year 1) of P9.7 billion;

2. free college tuition, P40 billion; unconditional cash transfers (for those who are hurt by Train), P36 billion;

3. Universal Health Care law, P65 billion;

4. the rebuilding of Marawi City and others, P60 billion.

The Train law is expected to generate P130 billion in revenues. However, the President’s programs listed above require at least P200.7 billion.

Will the government clarify how Train will accelerate development and promote prosperity for all when its revenue expectations fall short of our financial requirements?

How can Train be called the best gift to Filipinos when it does not look like a promising means for making life easier for our poor brothers and sisters?

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