The House of Representatives’ ways and means committee has approved “in principle” the proposed tax reform package “2 plus” of the Duterte administration, which aims to gradually lower the corporate income tax (CIT) while modernizing incentives for companies.
Quirino Rep. Dakila Cua, ways and means committee chair, said the panel would “work double time” to finish the bill, which specifically aims to gradually lower the CIT rate from 30 to 25 percent and modernize incentives for firms.
“We are trying to finish as early as possible without compromising the quality of the legislation,” Cua told reporters after they concluded their committee hearings.
Albay 2nd District Rep. Joey Salceda, one of the principal authors, said they have convened a technical working group (TWG) to consolidate the various bills amending the CIT.
AAMBIS-OWA Rep. Sharon Garin, another principal author, said “approved in principle” means that the TWG would proceed with the “consolidation of all bills and opinions” to be followed by the approval of the substitute bill and committee report by the ways and means panel.
Speaker Gloria Macapagal-Arroyo earlier said the chamber would prioritize the bill. President Rodrigo Duterte has also listed the second tranche of his administration’s Comprehensive Tax Reform Package as a priority.
READ: TRAIN 2 a House priority – Arroyo
Cua also said they would work hard to assure that the legislation would have no inflationary impact.
“We would go at any lengths, na ma-manage ang inflation at itong package na ito ay maging neutral sa inflationary effects,” he said.
“Sikapin ang lahat ng pwedeng sikapin na hindi maapektuhan ang lahat ng mga bilihin,” he added.
Cua also said they “aim to attract investments through the legislation” so “more jobs could be generated.”
“How to get there is kailangan natin ayusin ang investment schemes para mas maging responsive, targeted and transparent,” he added.
In his explanatory note of House Bill 7982, one of the bills amending the CIT, Salceda said it “seeks to lower the corporate tax rate, as well as widen the corporate tax base and plug its tax leakages, through rationalizing the administration of tax incentives.”
He noted that the country’s income tax system was characterized by a narrow base and a high rate of 30 percent, the highest in the ASEAN region.
“With the tax incentives rationalized and the tax base expanded, the corporate income tax rate that will now be reduced in order to alleviate the burden of the majority of the business community–notably the micro-small, and medium-size enterprises, who pay the regular 30 percent income tax rate,” the lawmaker said. /je
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