Senate unlikely to pass TRAIN 2 this year
Although President Rodrigo Duterte has said he wants the second major tax-reform bill to be passed this year, senators are not confident that it can be passed before the end of December. Senators are asking for a more careful consideration of the second tranche of the Tax Reform for Acceleration and Inclusion (TRAIN 2) law, arguing that rushing the next round of tax reforms is not a good idea, particularly at a time when the 2019 budget is under discussion. Senators also want to closely examine the projected loss of tax perks for locators in economic zones, and its impact on investment and the economy. The TRAIN 2 was approved on its third and final reading on Monday by the House of Representatives, where it is called the ‘Trabaho’ bill, standing for ‘Tax Reform for Attracting Better and High-Quality Opportunities’.
