Sen. Paolo ‘Bam’ Aquino IV has filed Senate Bill 1798 seeking to suspend the new tax reform law covering the additional taxes for petroleum products.
The bill will allow the government to suspend the implementation of the excise fuel taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Law if the average inflation rate surpasses annual target rate over a three-month period.
According to the senator, the bill will protect Filipino families from the rising prices of goods and services caused by the increase in the price of fuel.
Prior the legislation of TRAIN law, the Senate Committee on Economic Affairs, chaired by Sen. Sherwin Gatchalian, had hearings regarding the effects of the proposed legislation to the price of goods and services.
During the legislative inquiry, the economic managers of the government admitted that TRAIN law will cause a price increase but insist that it will only have a small effect in the inflation rate.
Senator also previously agreed to the proposal of Aquino to include a safeguard that will stop the implementation of TRAIN law when the inflation rate breaches the target range.
However, the provision was removed from the version of the bicameral conference committee, and the approved version of the TRAIN law.