2018 budget, TRAIN before impeachment

MANILA, Philippines — First things first. 

The ratification of the P3.7-trillion national budget for 2018 and the Duterte administration’s tax reform program need to be prioritized over the impeachment hearings of Chief Justice Maria Lourdes Sereno. 

“Our scheduled hearing (on the impeachment) could be our last for the year. We will resume the proceedings by January next year,” Oriental Mindoro Rep. Reynaldo Umali, chairman of the House of Representatives’ committee on justice, said over the weekend. 

He cited the need for both houses of Congress – the Senate and the House – to ratify the national budget, along with the proposed Tax Reform for Acceleration and Inclusion (TRAIN) whose conflicting versions still have to be reconciled by the bicameral conference committee.

This is aside from the possibility of Congress meeting in a joint session to extend for another year the martial law in Mindanao, as recommended by the Armed Forces of the Philippines to fight off IS-linked terrorism in the south. 

“There are so many concerns and our legislative commitment is equally important with the impeachment proceedings. As of the moment, we may cancel the hearings on Tuesday and Wednesday (Dec. 12 and 13),” Umali said. 

“But nothing is final and official yet. We will decide tomorrow (Monday),” he said, adding that they will discuss the matter with House Majority Leader and Ilocos Norte Rep. Rodolfo Fariñas.

Congress is scheduled to adjourn this week for the holidays.

Fariñas supported Speaker Pantaleon Alvarez’s position that Congress can hold a joint session this week to approve the martial law extension in Mindanao if the President will make a formal request to them within the week.

“Of course we can. But we are still awaiting the request,” Fariñas said.

Alvarez rejected anew the possibility of Congress holding a special session for the martial law extension because most of the lawmakers have already planned their Christmas vacation starting Dec. 15.

Davao City Rep. Karlo Nograles, chairman of the House committee on appropriations, said the bicameral conference committee has finally resolved the impasse on the 2018 budget after senators decided to restore the P50.7 billion they slashed from the Department of Public Works and Highways’ right-of-way budget. 

Quirino Rep. Dax Cua, chairman of the House committee on ways and means, and Sen. Sonny Angara, head of the Senate committee on ways and means, said they are working to pass the TRAIN as it seeks to fund the country’s infrastructure projects to spur development.

Among other levies, the tax reform measure imposes a P6 tax on diesel, kerosene, cooking gas and bunker fuel for electricity over three years starting Jan. 1. 

Coal tax opposed

A party-list group has joined the fray in opposing the national government’s plan to increase the excise tax for coal as endorsed by the Senate, saying it will result in power rate hikes considering that the Philippines’ electricity charges rank highest in Asia. 

The consumer group Alyansa ng mga Grupong Haligi ng Agham at Teknolohiya para sa Mamamayan Inc. submitted a two-page position paper to Nograles.

“The price of electricity affects all persons in every household and every business. Aside from being a basic necessity, affordable electricity is an important key to development, economic growth and social progress,” former congressman Angelo Palmones said. 

“Additionally, all the members of Agham are consumers of electricity and will be directly affected financially by the passage of Senate Bill 1592 and House Bill 5636,” he added. 

Palmones, a former media personality, criticized the Senate proposal increasing the coal excise tax from P10 per metric ton to P100 per MT on the first year, P200 in the second year, and P300 in the third and succeeding years as pushed by Sen. Loren Legarda.

Senator-proponents of the tax measure said it is expected to generate as much as P130 billion in fresh revenues, alongside higher taxes imposed on fuel, coal and sugar-sweetened beverages, among others.

As things stand now, Manila has the highest power rate in Southeast Asia and third in the entire Asia. 

Agham made its position known that it is vehemently opposed to the increase in the excise tax of coal under the proposed TRAIN of the Duterte administration. 

While TRAIN is intended to be a revenue acceleration measure, Palmones said it is actually replete with taxation rates and provisions that seem to be surreptitious insertions without proper and legal basis.