DTI chief appeases worries re TRAIN2

CEBU, Philippines — Department of Trade and Industry (DTI) secretary Ramon Lopez has appeased the Cebu business community assuring that the second tranche of tax reform will not be taking out the tax incentives of investors.

Like other government officials from concerned implementing agencies, Lopez explained that the Tax Reform Acceleration and Inclusion (TRAIN 2) is not a threat to the business sector, instead it would help strengthen the small and medium enterprises by leveling the playing field.

He explained that if the Philippines were to achieve a balanced economic growth, the current incentive system should be modernized and enhanced.

Lopez was in Cebu early this week to grace the opening of the two-day "Innovation Summit" held at the Waterfront Cebu City Hotel, which was one of the highlights of the Cebu Business Month (CBM 2018) organized by the Cebu Chamber of Commerce and Industry.

A pro-business and advocate of entrepreneurial development, Lopez convinced the business sector not be wary of the changes that will be brought about by TRAIN2, as this is meticulously crafted to benefit the entire economy, specifically in the small and medium players.

Thus, reduction of corporate tax is pushed, as well as rationalizing incentives that are currently enjoyed by companies which are already big and do not need tax holidays.

Cebu, which is predominantly the cradle of MSMES is bound to benefit from TRAIN2.

He mentioned the successful implementation of TRAIN 1, which already empowered the low income spectrum of the society by bigger take-home pay and other benefits brought about by the reforms to the country's economy in general.

According to Asian Development Bank (ADB), the implementation of TRAIN is expected to augment tax revenues and provide additional fiscal space for more progressive public spending.

The policy reforms are expected to yield additional P90 billion to P144 billion in tax revenue collection in 2018 and 2019, respectively.