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Philippines: Tax reform Package 3, 4 to be submitted this month
MANILA, Philippines — The Department of Finance (DOF) is planning to submit to Congress Packages 3 and 4 of the Comprehensive Tax Reform Program (CTRP) by the end of the month, according to Finance Secretary Carlos Dominguez.
Dominguez said the agency would soon be handing over to Congress its proposal on the two tax reform packages, which seek to simplify property and capital income taxes.
“By the end of the month, we will submit Package 3 and 4 together,” Dominguez said in an interview with reporters.
Earlier, the DOF said Package 3 of the CTRP will focus on the valuation of real estate property and the rationalization of property-related taxes and fees.
“We just want to make sure that the appraisal is done in an internationally accepted way and is done regularly. Now the local government will have the right to set the rate, we just want the valuation because the valuation now is really crazy,” Dominguez said.
Package 4 seeks to rationalize tax on interest income earned from peso deposits and investments; dollar deposits and investments; and dividends, equity, fixed income securities, and other investments.
“You know, on the financial taxes, the goal is to simplify it. We have 80 different types of taxes on financial products and instruments. Working very hard, we were able to reduce it to about 42,” Dominguez said.
According to the finance chief, the two packages would mostly be revenue-neutral for the government.
The Duterte administration is undertaking a Comprehensive Tax Reform Program, which involves five tax reform packages in total.
Package 1 of the CTRP is contained in the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which was enacted December last year and implemented on Jan. 1.
Meanwhile, Package 1B, which contains a proposed tax amnesty program, amendments in the bank secrecy law, and adjustments in the Motor Vehicle Users Charge, is pending in Congress.
Package 2, which pushes to lower corporate income tax rates while rationalizing the fiscal incentives system, is likewise pending in Congress.
The DOF has also expressed its intent to pass Package 2 Plus, which proposes for increases in alcohol, tobacco, mining and casino taxes, and Package 5, which focuses on health, environment and luxury taxation.
Source: https://www.philstar.com/business/2018/07/16/1833792/tax-reform-package-3-4-be-submitted-month#pTrZog84Lkz5Bf4J.99