Finance Secretary Carlos Dominguez on Monday said the move to lower income tax rates for personal and corporate income could cost government some P173.8 billion annually in revenue losses.
During the Development Budget Coordinating Committee meeting at the House of Representatives on Monday, Dominguez was asked by Albay Rep. Edcel Lagman if the move to lower income taxes could result in government revenue loss.
Dominguez earlier bared his proposal to gradually lower personal income tax from 32 percent to 25 percent and to lower corporate income tax from 30 percent to 25 percent.
Dominguez had said the finance department planned to do this in a period of two to three years.
During the hearing, Dominguez admitted that lowering income tax rate could result in a P139 billion revenue loss, and lowering corporate income tax rate could result in P34.8 billion revenue loss.
“Lowering income tax rates would bring down revenues by approximately P139 billion, and the lowering of the corporate income tax rates will bring down revenues by approximately P34.8 billion,” Dominguez said.
source: Inquirer
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