BAYAN Muna Rep. Carlos Isagani Zarate plans to question before the Supreme Court (SC) the Tax Reform for Acceleration and Inclusion (TRAIN) law.
The newly-signed TRAIN, according to Zarate will affect the 15.2 million poor families.
The TRAIN, signed into law by President Rodrigo Duterte, will take effect starting this month.
“The Makabayan bloc is now carefully studying SC case to stop TRAIN implementation,” Zarate said.
Zarate said that with the implementation of the tax reform package this year, the majority of poor people will suffer more and would be mired further in poverty.
He said the tax reform is expected to spike the prices of major basic commodities and services beginning this month.
“This ‘price shock’ would definitely hit the poor the hardest considering that they do not have higher take home pay due to TRAIN but have to shell out more money due to it,” he added.
Zarate stressed that TRAIN would kick up oil prices by P2.97 per liter for gasoline; P2.80 per liter for diesel; and P3.36 per liter for Kerosene.
The TRAIN will likewise would have a severe domino effect on the prices of other products and services which is further aggravated by the Value Added Tax increases on these products themselves.
“The effect of this ‘price shock’ can be crippling to the 15.2 million poor families and even to the whole economy,” he stressed.
Earlier, IBON Foundation, an independent think tank said that while Filipino families “certainly deserve income tax cuts” to cope with rising costs of living, it is misleading to claim that 6.8 million Filipinos will benefit from TRAIN.
“We will challenge the legality of this run-away TRAIN as it was railroaded in the House without the required quorum and distribution of approved copies to the members,” Zarate said.