Senate zeroes in on budget, tax reform

By Arjay L. Balinbin

THE SENATE may decide to pass some other priority bills as it expects to pass the 2018 Budget and the Tax Reform for Acceleration and Inclusion Act (TRAIN) on third reading prior to the adjournment of the session on Dec. 15, according to Senate Majority Leader Vicente C. Sotto III.

“[W]e can discuss and pass some other bills, because TRAIN and Budget can be done on third reading by the 24^th or latest 29^th [of November],” Mr. Sotto said in a text message on Friday, Nov. 10.

The Senate resumes session on Thursday, Nov. 16, ahead of the resumption of congressional sessions.

Mr. Sotto added the “bicameral meeting [will] start right after the passage [of both bills] on third reading.”

Among the priority bills the Senate may pass, according to the office of Senator Sotto, are “military and uniformed personnel pension, school feeding program, magna carta for scientists, electricity virtual one-stop shop, system loss, balik scientist program, first 1,000 days, occupational safety and hazard, illegal gambling, road board, Philippine Qualifications Framework, Start-up enterprises (“Start-ups”), salary standardization 4, estate tax amnesty, and low fare for students.”

BUDGET
It was earlier reported that the Senate is set to carry on with its sessions for budget amendments on Nov. 16-17 and its possible passage on Nov. 20-22, while the Tax Reform Bill amendments will be tackled on Nov. 23-24.

Speaking for the Senate committee on finance, Senator Loren B. Legarda expressed confidence that the Budget bill will be passed before Dec. 15.

“Four weeks is still enough for the Senate to finish the deliberations and amendments and approve the General Appropriations Bill (GAB), and for both houses of Congress to convene the bicameral committee conference and approve the bicam report,” Ms. Legarda said in a text message on Friday, Nov. 10.

She added: “When session resumes next week, we will resume with the interpellations for the remaining agencies — Department of Interior and Local Government, Department of National Defense, Film Development Council of the Philippines, Presidential Commission for the Urban Poor, Dangerous Drugs Board, and Philippine Drug Enforcement Agency — and the approval of the Bureau of Customs’ budget as they have submitted the documents requested from them.”

TRAIN
Given the tight schedule, senators have yet to tackle several amendments as cited by the committee chairman, Senator Juan Edgardo M. Angara, under whose committee the proposed Senate version of the tax reform program was presented to the plenary late September.

Despite that, Mr. Angara expressed confidence as well that the Senate version will “hopefully” be finalized before the Christmas holidays.

“We will try our best. There’s a lot of fiscal pressure in the government and I look at this also in the issues on debates for the budget,” he said when asked by reporters in an ambush interview at the Senate on Nov. 8.

Mr. Angara also said six to seven of his colleagues have so far submitted amendments. “They have already asked for meetings. I think they want to explain their amendments.”

Sought for comment, American Chamber of Commerce senior advisor John D. Forbes said that “there is enough time to get the Budget passed on time,” but the “tax bill may be more difficult to pass on time because they have to do [some] amendments and then there are some significant differences between the bills passed by the House and the Senate,” adding that “the period of amendments has not… [even] started [yet].”

Mr. Forbes also noted that among the priority bills that should be passed before the Christmas break is the Ease of Doing Business Act of 2017 or Senate Bill 1311.

“I would expect the Ease of Doing Business to be finished before Christmas. I think that’s what people need to have,” Mr. Forbes said.

Mr. Forbes added as well that the “emergency powers bill is something important to the business community because of the horrible traffic,” referring to the Senate Bill 1284 or an act compelling the government to address the transportation and congestion crisis through the grant of emergency powers to the President.

“I think we would hope in the near future, December or January, the Congress could make further progress on 2^nd and 3^rd reading on emergency powers.”

For Philippine Chamber of Commerce and Industry (PCCI) President George T. Barcelon, TRAIN should be passed as soon as possible as the country needs it “to beef up the infrastructures and social benefits.”

“The increase in tax revenue is an investment for the government to do the necessary things they have advocated in the socioeconomic pillars,” Mr. Barcelon said.

However, Mr. Barcelon expressed dismay over the Senate version of the Tax Reform Bill.

“The Senate version is a bit watered-down. It’s a compromise,” said Mr. Barcelon, adding, “The version of (the) House would yield higher revenue.”

On the other hand, Mr. Angara had clarified last month that the Senate version, “after the period of amendments,” will “approach” the House’s revenue generation estimate of P119 billion.

Other than TRAIN, Mr. Barcelon also said the “Salary Standardization Act” would be helpful, adding that he also supports the “Anti-Redtape Act.”

“I’m supportive of it. I would like it to be passed,” he said.

Also sought for comment, former Finance secretary Margarito B. Teves expressed optimism that both Budget and Tax Reform bills will be passed before 2017 ends.

“We are optimistic that they will be passed as scheduled,” he said.

If the 2018 budget will not be passed on time, that “would mean a reenactment of the P3.35-trillion 2017 budget, which means that some proposed expenditures in 2018 will not be funded, e.g. Marawi rehabilitation, free tuition in state universities and colleges (SUCs), free irrigation, among others,” Mr. Teves said.

Moreover, failure to pass TRAIN bill “would mean that the projected revenues arising from package 1 will not be available,” Mr. Teves also pointed out.

“This means there will not be enough funding for the Build, Build, Build program or for new spending mandated by Congress. If the government still wants to spend money for unprogrammed funds, it will incur a higher level of deficit, which will, in turn, spur a higher level of inflation.”

“Filipino taxpayers will also not yet benefit from lower personal income taxes, a better transport and infrastructure system, improved health care and targeted cash transfers, and other gains from having a simpler, fairer, and more efficient tax system,” Mr. Teves added. — with Minde Nyl R. dela Cruz