DOF’s tax package back to the drawing board
Tax package a no go at the House of Representatives. (Photo by JOAN BONDOC/Philippine Daiy Inquirer)
The tax package of the Department of Finance (DOF) is back to the drawing board after the House of Representatives ways and means committee voted to revert the bill back to the technical working group (TWG).
The House ways and means committee on Tuesday approved a motion by minority leader and Quezon Rep. Danilo Suarez which was duly seconded by Deputy Speaker and Pampanga Rep. Gloria Macapagal-Arroyo to create a TWG to further tackle the DOF’s tax package or House Bill 4774.
The administration’s tax reform package seeks to lower personal income tax, raise excise tax on oil and vehicles, expand the value-added tax (VAT) base, among others.
READ: DOF files tax reform package, seeks reduction in income tax
The committee decided to put the bill back to the drawing board on the day the House panel was expected to approve the bill in the committee level.
Suarez said the creation of the TWG seeks to consolidate similar House bills with the DOF’s version.
“Create a TWG will address several issues [of lawmakers and stakeholders]. The TWG is tasked to adopt a modified version or substitute bill,” Suarez said.
Arroyo said the TWG would be able to address the concerns of all stakeholders raised in the past seven hearings of the House ways and means committee on the tax package.
Deputy Speaker Marikina Rep. Romero Quimbo said the TWG also seeks to consolidate with the tax package the 45 pending bills seeking to lower personal income tax rates.
“We’re back to where we really want to start, which is we want to approve a tax measure…that addresses the concerns particularly the progressivity to collect money,” said Quimbo, who chaired the ways and means committee during the 16th Congress.
Ways and means chairman Quirino Rep. Dakila Cua expressed hope that the creation of a TWG would still result in a comprehensive tax package.
He said he would ask the House leadership to allow the TWG to meet during the break so that the tax package would be consolidated after the Congress’ recess.
Finance Secretary Carlos Dominguez III said the tax package would serve as a shield for the country amid a possible global economic slowdown.
Finance Undersecretary Karl Kendrick Chua earlier expressed hope that the House bill would be passed on third and final reading by June or July, when Congress resumes from its break.
Meanwhile, the DOF will come up with its proposal on the second tax package seeking to lower corporate income tax rate by the third or fourth quarter of the year, Chua added.
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