House approves tax reform bill

MANILA: The Lower House of Congress in the Philippines passed a much-anticipated tax reform bill on Wednesday, aimed at generating revenue to fund a multi-billion dollar infrastructure programme key to the government’s economic agenda.

The bill, yet to be published and which still needs Senate approval, is expected to be a leaner version of an initial draft that drew opposition from some lawmakers to measures deemed to burden low-income families.

The tax reform measure is critical to President Rodrigo Duterte’s economic programme, which focuses on infrastructure spending and fiscal efficiency to lift growth to as much as 8 per cent before his six-year term ends in 2022.

Duterte, whose 11-month presidency has been defined by a bloody anti-narcotics campaign, threw his weight behind the tax bill and urged Congress on Monday to immediately approve and support his plans.

The expected revenues from the bill, which cut the personal income tax rate, expanded the value-added tax base, raised excise taxes on fuel and automobiles, and slapped levies on sugar-sweetened beverages, were expected to fall short of the 162 billion pesos ($3.26 billion) the government sought.

“The department of finance is very happy with the turnout,” assistant finance secretary Paola Alvarez said.

— Reuters