SORSOGON CITY --- Senator Bam Aquino warned that 90 percent of the foreign direct investments (FDI) in the country would pull out once the government insists to push through with the administration’s second package of the Tax Reform for Acceleration and Inclusion (TRAIN 2) law.
Aquino was among the senators invited by Senator Francis “Chiz” Escudero at the latter’s Gubernatorial Proclamation Rally at the Our Lady of Penafrancia Seminary grounds on Sunday afternoon.
Aquino said one of the reasons why there is a notable low entry of FDI is because of the changes in policies contained in the provisions of the TRAIN 2 that will hurt the inflow of investment to the country.
Aquino in a press conference on Sunday said when Train 2 was being strongly pushed by the administration “maraming investors ang kinabahan at natakot dahil sa mga pagbabago sa polisiya sa pagbibigay ng insentibo.” (Many investors were worried and scared of the new policies that grant incentives).
Aquino quoting a statement from the Philippine Chamber of Commerce and Industry (PCCI) said investors threatened to pull out 90 percent of their investments once the government insists on changing the present policies granting incentives.
“Why should we do this and put at risk the employment of our workers where thousands of workers could lose their jobs once this law is passed,” Aquino pointed out.
Under TRAIN 2 the government will push for a gradual lowering of corporate income tax to 25% from 30% while curtailing incentives currently enjoyed by large companies.
Aquino. a re-electionist senator running under the oppositionist Ocho Diretso team said he would again reject the passage of the TRAIN 2 as he did when he objected to the TRAIN 1.
Escudero whose term as Senator ends this year is running for governor of Sorsogon under the banner of the Nationalist People’s Coalition (NPC).
Around 6,000 supporters clad in red and white shirt attended the rally at the seminary grounds.
Aside from Aquino, other senators that attended the rally were: Senators Grace Poe, Cynthia Villar, JV Ejercito, former PNP chief Ronald ‘Bato’ de la Rosa, aspirant Neri Colmenares, Ocho Diretso senatorial candidates, former SolGen Florin Hilbay, election lawyer Romy Macalintal and former senators Juan Ponce Enrile, Jinggoy Estrada, Bong Revilla, and Lito Lapid.