Philippines: TRAIN implementation won’t significantly impact MVP firms

• Jan 15, 2018

MANILA, Philippines — Businessman Manuel V. Pangilinan said the implementation of the tax reform law would not have a significant impact on his companies.

“All of us, all the companies will be affected in some shape or form but I don’t think the effect would be significant enough,” he said when asked about the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

The TRAIN, which took effect earlier this year, reduces personal income tax rates and imposes higher taxes on certain products to offset foregone revenues.

Among the products slapped with higher taxes are fuel, cars, tobacco and sugar beverages.

The TRAIN is the first package of the Comprehensive Tax Reform Program which seeks to have a just, simple and more effective tax collection system.

Revenues raised from the measure would be used for infrastructure and development projects.

Pangilinan is currently the chairman, president and chief executive officer of telco giant PLDT Inc. He is likewise chairman of mining company Philex Mining Corp.

He is also chairman of infrastructure conglomerate Metro Pacific Investments Corp. (MPIC), which is involved in various businesses such as tollways, water, power, hospitals, rail, and logistics.

Manila Electric Co. (Meralco), a subsidiary of MPIC, earlier said customers could expect an increase of at least eight centavos per kilowatt-hour in electricity bills due to the TRAIN Law.

According to Meralco, electricity rates would be pushed up by the implementation of the coal excise tax and the removal of the value added tax exemption of the National Grid Corp of the Philippines under TRAIN.

Following the announcement of the possible rate hike, Energy Secretary Alfonso Cusi has ordered Meralco to explain how it came up with the increase.

Source: http://beta.philstar.com/business/2018/01/15/1777767/train-implementation-wont-significantly-impact-mvp-firms#2Jll1uEGkggAvedi.99