Press Release
August 8, 2018

Sen. Bam Aquino to block TRAIN 2 anti-education provision

Sen. Bam Aquino has committed to block the removal of the 10-percent preferential tax rate for private non-profit schools under the proposed TRAIN 2.

The senator believes that the removal of the 10-percent preferential tax rate will lead to increase in tuition and other fees.

"Sa dulo, ang mga pamilyang nagpapaaral din ang papasan nito kaya tataas ang matrikula," said Sen. Bam, one of four senators who voted against the ratification of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

"Nalulunod na nga sa taas presyo ng bilihin, tataas pa ang gastos sa eskuwela," said Sen. Bam. "Maawa naman po kayo sa ating mga kababayan. Dagdag na pahirap na naman ito sa pamilyang Pilipino."

Currently, private non-profit proprietary educational institutions receive a preferential 10-percent income tax rate, together with non-profit hospitals, offshore banking units and regional operating headquarters.

But under the TRAIN 2 proposal, these institutions may be taxed up to 25%, more than double their current rate, leaving them with less money to invest in quality education for their students. What's more, this additional cost may result in higher tuition fees.

Instead of working on TRAIN 2, Sen. Bam is appealing to Congress to address the gaps in TRAIN 1 and pass the Senate Bill No. 1798, or his "Bawas Presyo Bill", which seeks to suspend the excise tax on fuel under the TRAIN Law when the average inflation rate surpasses the annual inflation target over a three-month period.

"Solusyunan at aksyunan na natin ang Bawas Presyo Bill upang bigyan ng ginhawa ang mga Pilipinong nalulunod sa taas-presyo," said Sen. Bam.

The senator said the immediate passage of the measure is necessary since another round of increase in the excise tax on fuel will happen on January 2019 under the TRAIN Law.

"Huwag naman natin hayaan na itaas pa ng gobyerno ang presyo ng petrolyo habang nalulunod ang mga Pilipino sa gastos," Sen. Bam stressed.

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