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Auto loans to grow due to TRAIN, says BPI exec

An official of Ayala-led BPI Family Savings Bank is optimistic about the sustained expansion of their car loans this 2018 following the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law earlier this year.

On the occasion of the bank’s announcement on Tuesday of its eighth-year participation to the 2018 Manila International Auto Show (MIAS), BPI Family Retail Lending Group Head Qit Abola said they are very “encouraged” by the implementation of tax reform. MIAS 2018 would take place at the World Trade Center in Pasig City on April 5-8.

He said the tax reform gives the minimum wage earners additional money that they could set aside for savings or to purchase things like vehicles. “So to me, when I look at that, I can see big expansion and access to cars,” he said.

TRAIN cut personal income tax (PIT) rates and gave those earning PHP250,000 annually a tax-free rate. It expanded the tax payment exemptions since minimum wage workers have been exempted from paying PIT even before TRAIN was approved.

The Department of Finance (DOF) said about 99 percent of individual taxpayers in the country would benefit from TRAIN, which is the first package of the Duterte administration’s Comprehensive Tax Reform Program.

Abola expects loan growth to be at high double digit this year to be boosted by fast turn-around time for loan applications and low rates. He also said that since some of the proceeds of the additional government revenue from TRAIN would be used to put up necessary infrastructure like roads and bridges, people would be encouraged to take out car loans.

Joann Villanueva / PNA