DOF keeps mum on lower income tax bills
Holistic approach sought
The Department of Finance (DOF) wants to keep mum on the pending proposals seeking to lower income tax rates in the country after Malacañang signalled its softening stand on the measures.
Several reporters sought for comments of Finance Secretary Cesar V. Purisima and other DOF officials, but everybody was of no avail. The agency’s media relations office also declined to comment.
Sources said Purisima, who often seen attending forums overseas, prefers to speak with international media, instead of the local press. The finance chief earlier said the Philippine press “can really exaggerate on the negative rather than on the positive.”
But Budget Secretary Florencio B. Abad said President Benigno S. Aquino III is set to consult with Purisima and Internal Revenue Commissioner Kim S. Jacinto-Henares following the chief executive sudden change of stand.
However, the finance department earlier said the fiscal authorities were open to the proposed reduction in income tax rates. However, the agency said this should be done through a “holistic” approach.
The finance secretary suggested that Congress should consider complete revision of the country’s National Internal Revenue Code (NIRC), saying a “piecemeal” approach, like the revision of the corporate and individual income tax rates, may be disruptive to government’s revenue stream.
While the DOF admitted that some features of the current corporate and personal income tax system are inequitable, “there are areas [in the present tax regime] that can’t stand improvement.”
The DOF is proposing that Congress should also look into the tax exemptions as well as other tax perks provided by the government to certain individuals and sectors.
The DOF has been pushing for tax incentives management transparency and accountability (TIMTA) act, the rationalization of fiscal incentives, the reform of the fiscal regime for mining and the customs modernization and tariff act (CMTA).
“The goal is how you’ll make it friendlier to both investors and individuals but at the same time address our needs as government. We can’t have all these programs and not have a source for it,” the finance chief said.
The DOF, however, is optimistic that the planned revision of the entire tax structure of the government will not take a long period of time.
“They said that they [lawmakers] going to give it priority [the proposed redivision of NIRC], and when the Senate gives a priority, we will be supportive,” Purisima said.