Philippine tax reform bill to Senate

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 program 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 eight per cent. He 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 sugarsweetened 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 told Reuters. “We are hoping the Senate will also support the president’s bill that will be the foundation of this administration’s socio-economic agenda.” — Reuters