Drilon bats for re­view of fis­cal in­cen­tives, not im­po­si­tion of new taxes

Manila Bulletin - - Front Page - By HAN­NAH L. TORREGOZA

Pres­i­dent Duterte’s eco­nomic man­agers should sup­port the re­view and ra­tion­al­iza­tion of fis­cal in­cen­tives law and not call for the im­po­si­tion of new taxes.

Se­nate Pres­i­dent Pro Tem­pore Franklin Drilon made the call as he urged the govern­ment to back

a pro­posal pend­ing in the Se­nate that seeks to ra­tio­nal­ize the fis­cal in­cen­tives granted to busi­nesses as a way of in­creas­ing govern­ment rev­enue rather than con­tinue its plan to raise taxes on fuel prod­ucts.

Drilon urged the Depart­ment of Bud­get and Man­age­ment (DBM), Depart­ment of Fi­nance (DOF), and the Depart­ment of Trade and In­dus­try (DTI), in par­tic­u­lar to fo­cus on ef­forts to ra­tio­nal­ize tax in­cen­tives “to gen­er­ate ad­di­tional rev­enues to help off­set the pro­jected dip in rev­enues that may arise from in­come tax cuts.”

“I hope that our eco­nomic man­agers will work closely with Congress for the long-sought Ra­tion­al­iza­tion of Fis­cal In­cen­tives law in­stead of spend­ing its time on a tax hike on petroleum prod­ucts that will surely neg­a­tively af­fect our peo­ple,” Drilon said in a state­ment.

“If our aim is to in­crease rev­enues, then the govern­ment should look at re­view­ing the var­i­ous laws on the grant of tax in­cen­tives and plug the leak­ages in our tax sys­tem,” the Se­nate leader added.

“We should not pass the buck and shift the bur­den to our peo­ple,” Drilon said.

He also said the ad­min­is­tra­tion should try to ex­haust other means to com­pen­sate for the ex­pected fore­gone rev­enues from the pro­posed in­come tax cut.

The sen­a­tor had ear­lier filed Se­nate Bill No. 229 which seeks to re­view the govern­ment’s sys­tem of grant­ing in­cen­tives to busi­ness en­ter­prises in the coun­try “in or­der to en­sure that grant of in­cen­tives pro­motes so­cial and eco­nomic ben­e­fits to Filipinos.”

As au­thor of the law, Drilon said the mea­sure would cover all in­cen­tives granted by all in­vest­ment pro­mo­tion agen­cies (IPAs) such as the Board of In­vest­ments and Philip­pine Eco­nomic Zone Au­thor­ity (PEZA) to for­eign and lo­cal busi­ness en­ter­prises.

Drilon said the govern­ment would be able to as­sess the eco­nomic im­pact of these in­cen­tives by re­view­ing the grant and ad­min­is­tra­tion of in­cen­tives to busi­ness en­ter­prises not­ing that there are about 186 laws on nu­mer­ous fis­cal and non-fis­cal in­cen­tives and sub­si­dies in the coun­try.

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