The Department of Finance (DOF) is
targeting to secure Congress’s approval for the remaining packages of
its Comprehensive Tax Reform Program (CTRP) by the end of the year.
During the Philippine Economic Briefing forum in Davao City last Friday, DOF Assistant Secretary Ma. Teresa S. Habitan bared that the DOF is eyeing for “Package 2 plus” to be ratified in Congress by December along with Package 3 and Package 4 of the CTRP.
“And we count on your support on the succeeding packages to be heard by Congress this year,” Habitan told businessmen during her presentation at the forum.
Package 2 plus includes measures tackling the increase in excise taxes on sin products, namely, tobacco and alcoholic products, mining, coal and casino operations.
The proposal to increase excise tax rates on sin products like tobacco and alcoholic beverages is being targeted for Congress ratification by June 2018, while the the comprehensive mining tax and that of the removal of the value-added tax for coal and casino operations is being eyed for December.
Package 2 of the CTRP, which aims to lower corporate income-tax rates from 30 percent to 25 percent, as well as harmonizing fiscal incentives, was submitted to Congress in January. Package 1B of the first package of the CTRP, which is now the Tax Reform for Acceleration and Inclusion (TRAIN) law, is being eyed for passage by the end of this month.
“The Philippines grants the most generous tax incentives by giving them forever the GIE [gross income earned]. All other countries in the Asean impose a ceiling. This just proves that we have to revisit the way we do our incentives law,” Habitan said.
Under the TRAIN, which was signed into law by President Duterte in December 2017, the lowering of personal income-tax rates was implemented including a number of offsetting measures, such as increasing taxes on fuel, expanding the taxpayer base and limiting VAT exemptions, among others.
Under Package 1A, the increase in coal excise tax, which was originally proposed to be included in the DOF’s fifth package of the CTRP, was raised from the current P10 per metric ton to P50 per MT in the first year of implementation, P100 in the second year and P150 in the succeeding years.
And the increase in tobacco excise tax rates was also included, from the current P30 per pack, it will be raised to P32.5 in the first half of this year and to P35 starting from July 2018 to December 2019.
Finance Secretary Carlos G. Dominguez III earlier bared that Package 1B tackles tax administration measures, as well as tax amnesty provisions and lifting of the bank-secrecy law.
Package 3 of the DOF’s proposed CTRP tackles property taxation, with the goal of lowering the rate of donor’s and estate taxes, as well as the rate of transaction taxes on land. The offsetting measures include the rationalization of valuation of properties, or increasing valuation closer to market prices.
The fourth package covers capital income taxation, which aims to reduce the taxes imposed on interest income earned on peso deposit and investments from 20 percent to 10 percent. Its offsetting measures include the harmonization of capital income-tax rates for dollar deposits and investments, dividends, equity and fixed income rates to 10 percent. It also includes increasing tax on stocks traded in the stock market from 0.5 percent to 1 percent on gross selling price.
DOF Undersecretary Karl Kendrick T. Chua bared last year that the DOF wants all tax-reform packages approved before 2019, which is an election year. Packages 3 and 4 of the CTRP have yet to be submitted to Congress.
source: Business Mirror
During the Philippine Economic Briefing forum in Davao City last Friday, DOF Assistant Secretary Ma. Teresa S. Habitan bared that the DOF is eyeing for “Package 2 plus” to be ratified in Congress by December along with Package 3 and Package 4 of the CTRP.
“And we count on your support on the succeeding packages to be heard by Congress this year,” Habitan told businessmen during her presentation at the forum.
Package 2 plus includes measures tackling the increase in excise taxes on sin products, namely, tobacco and alcoholic products, mining, coal and casino operations.
The proposal to increase excise tax rates on sin products like tobacco and alcoholic beverages is being targeted for Congress ratification by June 2018, while the the comprehensive mining tax and that of the removal of the value-added tax for coal and casino operations is being eyed for December.
Package 2 of the CTRP, which aims to lower corporate income-tax rates from 30 percent to 25 percent, as well as harmonizing fiscal incentives, was submitted to Congress in January. Package 1B of the first package of the CTRP, which is now the Tax Reform for Acceleration and Inclusion (TRAIN) law, is being eyed for passage by the end of this month.
“The Philippines grants the most generous tax incentives by giving them forever the GIE [gross income earned]. All other countries in the Asean impose a ceiling. This just proves that we have to revisit the way we do our incentives law,” Habitan said.
Under the TRAIN, which was signed into law by President Duterte in December 2017, the lowering of personal income-tax rates was implemented including a number of offsetting measures, such as increasing taxes on fuel, expanding the taxpayer base and limiting VAT exemptions, among others.
Under Package 1A, the increase in coal excise tax, which was originally proposed to be included in the DOF’s fifth package of the CTRP, was raised from the current P10 per metric ton to P50 per MT in the first year of implementation, P100 in the second year and P150 in the succeeding years.
And the increase in tobacco excise tax rates was also included, from the current P30 per pack, it will be raised to P32.5 in the first half of this year and to P35 starting from July 2018 to December 2019.
Finance Secretary Carlos G. Dominguez III earlier bared that Package 1B tackles tax administration measures, as well as tax amnesty provisions and lifting of the bank-secrecy law.
Package 3 of the DOF’s proposed CTRP tackles property taxation, with the goal of lowering the rate of donor’s and estate taxes, as well as the rate of transaction taxes on land. The offsetting measures include the rationalization of valuation of properties, or increasing valuation closer to market prices.
The fourth package covers capital income taxation, which aims to reduce the taxes imposed on interest income earned on peso deposit and investments from 20 percent to 10 percent. Its offsetting measures include the harmonization of capital income-tax rates for dollar deposits and investments, dividends, equity and fixed income rates to 10 percent. It also includes increasing tax on stocks traded in the stock market from 0.5 percent to 1 percent on gross selling price.
DOF Undersecretary Karl Kendrick T. Chua bared last year that the DOF wants all tax-reform packages approved before 2019, which is an election year. Packages 3 and 4 of the CTRP have yet to be submitted to Congress.
source: Business Mirror
