MANILA — All working Filipinos will benefit from the approval of the first tax reform package and its recent ratification, Finance Secretary Carlos Dominguez III said it is an achievement since the country is not facing any crisis right now.
In a recent briefing, Dominguez said last week’s ratification by the Bicameral Conference Committee of the proposed measure “is an important milestone in our history (because) it’s the first time we have done a tax reform without any pressure from the outside, no crisis.”
“I think it’s a sign of maturity for our country. It is also the first of five packages that will, once and for all, start fixing the structural problems of the tax system that has become unfair, complex and inefficient. This tax reform will also raise the revenues needed to make a real positive change to each Filipino’s lives,” he said.
The Finance chief said the first package of tax reform aims to address the inequality of the current tax system as it will reduce income taxes for 99 percent of taxpayers.
He said this is a change that should have been addressed early on since the last tax reform was done 20 years ago.
Under the ratified bill, the first PHP250,000 income of all working Filipinos will now be tax-free.
Filipinos who belong to the lower 50 percent bracket of the society will be given targeted cash transfer to help them cope with higher prices of goods as a result of the hike on consumption taxes of the rich.
Dominguez said the first tax reform package will also raise revenues to be used to fund the Duterte administrations infrastructure program amounting to at least PHP8 trillion until 2022.
He said the imposition of rice tariff will also help increase revenues without any spike in inflation.
“With the people’s support and understanding all these reforms will result in more and better jobs, lower prices and brighter future for the Filipinos, for every Filipino,” he added. (PNA)
