Business groups welcome Duterte’s SONA priorities

MANILA, Philippines — The country’s top business groups yesterday welcomed the commitment of President Duterte to pursue tax reform and sign the second package of the Tax Reform for Acceleration and Inclusion (TRAIN) within the year during his State of the Nation Address (SONA). 

Philippine Chamber of Commerce and Industry chairman George Barcelon said in a telephone interview the President’s commitment to pursue tax reform is necessary to fund various projects being implemented by the government for infrastructure and social services. 

“There are many projects under Build Build Build and for education. We need funding for that,” he said. 

He said the President’s statement that he hopes to sign TRAIN 2 by the end of the year is also seen as a positive development. 

The proposed second package of the TRAIN would reduce corporate income tax rates and rationalize incentives given to investors. 

“This will provide tax breaks for businesses and bring us to parity with other countries,” Barcelon said.

For his part, Management Association of the Philippines president Ramoncito Fernandez said the group supports the pronouncements made on the TRAIN as well as the commitment to pursue ease of doing business, provide subsidy for the poor, care for the environment, as well bring down the price of rice. 

Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr., meanwhile, said the group is concerned with Duterte’s pronouncement to Congress to end the practice of contractualization. 

“The problem is the word contractualization refers to all kinds of contracts. That has to be clarified,” he said.   

In response to the President’s urgent call on the passage of Package 2 of the Comprehensive Tax Reform Program, Finance Secretary Carlos Dominguez III said the Department of Finance (DOF) is committed to help Congress meet the deadline.

The finance chief said the administration is “definitely serious” about having Package 2 signed by the end of the year.

“We will extend all the technical support that Congress needs in heeding the President’s call for the passage of Package 2 this year, especially for the benefit of our small and medium enterprises,” he said.

According to Dominguez, the DOF believes that the President’s strong statements on the tax reform program would “help allay whatever uncertainty is left” about the measure.

More promises

On the other hand, Sen. Francis Pangilinan said the President’s SONA was more of the same promises that he has been making since he was campaigning in 2016. 

Pangilinan, president of the Liberal Party, said the coup staged by former president and now Pampanga Rep. Gloria Macapagal-Arroyo and her allies against House Speaker Pantaleon Alvarez served as the highlight of the SONA more than anything else the President said. 

Zero grade

Opposition leaders gave Duterte a zero grade on his “empty” third SONA.

Sen. Antonio Trillanes IV said Duterte “was apparently on the verge of giving up as he failed to address solutions to the country’s many woes.” 

He said the SONA was that of a “defeatist” president who is under fire on different fronts by various sectors. 

Trillanes, one of the most vocal critics of Duterte, said the President should have at least given solutions to the problems facing Filipinos such as the high commodity prices, human rights situation and the West Philippine Sea issue. He said the tiff at the House of Representatives before Duterte delivered his SONA showed apparent “cracks” in the administration and its power-grabbing allies.  –  With Mary Grace Padin, Marvin Sy, Romina Cabrera, Louise Maureen Simeon