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MANILA - It's a challenge educating the public about tax reforms and inflation, an official said, following the misconceptions received by the government while trying to explain the impact of rising prices of goods in a household.

It may be difficult but it is important to keep communicating and to "foster an understanding of these issues," Finance Assistant Secretary Tony Lambino told ANC's Early Edition.

Explaining the second tranche of the tax reform is even more difficult since the first package is still plagued by "misinformation," he said.

"These important issues and public understanding of them is really a process. It takes time. The ability of government to communicate is very important in bringing about citizen participation," he said.

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Package 1 of the Tax Reform for Acceleration and Inclusion (TRAIN) law implemented income tax exemption for workers earning P250,000 and below. Additional taxes on oil, tobacco and sugar-sweetened beverages, among others, were also imposed by TRAIN 1.

For the second tranche, the government plans to rationalize fiscal incentives that could level the playing field for big and small enterprises, Lambino said.

"The more you give incentives, the more you make the playing field less leveled, so we need to make sure that we’re able to balance those interests," he said.

Incentives should be awarded to companies for the right reasons, such as the ability to create jobs, and to bring technology and innovations to the country.

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