TRABAHO BILL: Inputs by Mon Abrea on Offsetting Measures

Will the proposed TRAIN 2 Package be bane or boon in the Philippine economy? Find out below.

posted November 10, 2018 at 07:00 pm
by  Manila Standard
TRABAHO Bill and SB 1906: Inputs by Mon Abrea


TRABAHO Bill and SB 1906: Inputs by Mon Abrea ON  OFFSETTING MEASURES.

I agree with the removal of preferential tax rates on the sectors proposed by SB No. 1906. These industries will already be benefiting from the lowered Corporate Income Tax.

Proprietary Educational Institutions and Hospitals

I disagree with SB No. 1906’s proposal to remove the preferential tax rates from proprietary educational institutions and hospitals. Education and health are part of the government’s duty to its citizens, and if they cannot provide the adequate service then they must rely on private citizens to do so.

By taxing educational institutions and hospitals, citizens will be the ones feeling the brunt of the burden.

TRABAHO Bill and SB 1906: Inputs by Mon Abrea ON  OFFSETTING MEASURES.
Reduced Optional Standard Deduction

I disagree with the need to reduce these deductions. We need to encourage more taxpayers availing of OSD to lessen taxpayers claiming

itemized deductions which is subject to BIR audit. Time and again, collections from BIR audit have shown to be very insignificant at less than 2% of total revenue collections.

Franchise Tax on Domestic Airlines

I disagree with this new imposition of tax. It will increase airfare and affect ordinary citizens – not the big corporations as the bill is presumably hoping to do.

Incentives Reform

Both bills propose versions that will make the incentives system fairer for all business. However, I agree more with the version proposed by SB No. 1906. It proposes incentives that are already strategic and timebound without gutting our ecozone locators too much.

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Topics: House Bill No. 8083 , BIR , Trabaho Bill , SB 1906 , Train law 2 , mon abrea
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