Tax reform possible before year-end—DOF
The reduction in personal income tax rates could “possibly” be implemented within this year if the Congress would swiftly pass the proposed Tax Reform for Acceleration and Inclusion Act (TRAIN), the Department of Finance (DOF) said yesterday.
In a statement, Finance Secretary Carlos G. Dominguez III said the reduced withholding taxes may take effect in the third or fourth quarter of 2017 as long as the TRAIN bill could hurdle the Senate at the onset of its second regular session.
“With the President’s certification of the TRAIN bill as an urgent and a priority measure, complemented by the personal appeal he made before our lawmakers in his SONA, we are hopeful that the Senate will pass the measure soon enough,” Dominguez said.
Once approved, the finance chief said the tax reform law could be implemented “possibly” by the third or fourth quarter this year.
On Monday, President Rodrigo R. Duterte renewed his call for the Congress to urgently approve the tax reform measure.
In May, the House of Representatives approved with an overwhelming majority of 246 votes the proposed TRAIN as House Bill 5636. The Senate is expected to tackle the bill with Monday's opening of the second regular session of the 17th Congress.
In his SONA, the President said that the TRAIN is designed to be “pro-poor, especially when the people understand how the revenues will be spent.”
He said the “poor and vulnerable are at the heart of tax reform” and congressional support for the TRAIN will ensure that its benefits “can be felt immediately” by these sectors.
Duterte also cited the primacy of infrastructure investments as a way to sustain high growth over the medium term and attract more investments that will create jobs and help reduce poverty.
Economic growth, according to the President, is contingent on ensuring a safe environment for the people, which is why he will remain relentless in his war against illegal drugs and criminality.
The President also gave marching orders to his Cabinet and all other government officials to implement effective measures to cut red tape and curb corruption.