Lower taxes, more spending; no more contractualization

THE incoming Duterte administration has vowed to lower income taxes, curb contractualization, and increase government spending for infrastructure.

Time for social justice in taxation and employment. Plus inclusive growth through right government spending.

*** Incoming Finance Minister Carlos Dominguez said the Duterte administration is open to changes and reforms such as the lowering income taxes, checking contractualization, and diversifying the country’s borrowings to fund infrastructure projects.

We want to keep the country on the right track to growth, he pointed out.

*** Talking about taxation, Dominguez said he is targeting the widening of the tax base and making the revenue raising regime more equitable.

More taxpayers and reasonable taxes, he told Reuters.

*** Dominguez said the income tax rate for individuals and companies should be slashed to “mid-20s” percent from the current 32 percent, without necessarily raising the 12 percent value-added tax (VAT) on goods and services.

“Almost half of your (income goes to) the government. You think that’s smart? I don’t think so,” says Duterte’s finance chief.

*** Dominguez added that new taxes may be imposed on “unhealthy products,” aside from cigarettes and alcohol, to compensate for income tax cuts.

And the BIR and the BOC will be rid of massive corruption as per DU30’s instruction, he added.

*** Likewise, Dominguez said that the unnecessary contractualization of jobs by big Philippine companies will be checked and stopped.

The biggest headache of Philippine labor will soon be remedied, he promised. *** “Our administration is not in favor of a system where people cannot plan their lives, cannot say whether or not they can send their kids to school after six months,” said Dominguez.

More regularization for workers than oppressive “endo.”

*** Dominguez added that the boosting of infrastructure spending will jibe with the improvement of other basic services, along with the campaign against corruption and criminality.

This will also lessen horrific and jarring traffic jams, he explained.

*** Dominguez added that issuance of government bonds will be resorted to, together with other fund raising services and schemes that will give the country a “better deal.”

PH “suksok” bonds will be offered to finance Philippine development.

*** With Dominguez’ announcement, Filipinos would indeed look forward to lower income taxes, the curbing of contractualization, and the construction of more government infra projects in the coming days..