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Filipino Businesses Welcome Income Tax Reforms

by Mary Swire,, Hong Kong

21 March 2017

Representatives from the Philippines' major business organizations have expressed support for House Bill No. 4774, which includes measures to make the tax system simple, equitable, and efficient for small taxpayers.

House Bill No. 4774, which was submitted to the House of Representatives on January 17, 2017, would cut personal income taxes as well as donor and estate taxes. It would also broaden the tax base by adjusting excise tax rates for automobiles and fuel and plug value-added tax leakages. It would retain the current VAT concessions enjoyed by seniors and persons with disabilities.

Speaking at a recent hearing of the House Ways and Means Committee, Arthur Juego of the Trade Union Congress of the Philippines said that the labor group "welcomes the initiative of the Government to reform the tax system, most especially the current income tax structure." Juego said that the proposed PIT reforms will "provide economic relief to workers who need to increase their take-home pay as the prices of basic necessities and services such as food, water, electricity, medicine, housing, and transportation are constantly increasing."

For her part, Benedicta Du-Baladad, President of Financial Executives of the Philippines, told the hearing that that the organization supports the Bill because of its "features of progressivity, simplification, and leveling the playing field."

Trinidad Rodriguez, Executive Director, the National Tax Research Center, said the reform is "long overdue; it's been [unchanged] for almost two decades. It's just right that we reduce the tax rate and widen the taxable income brackets to address the so-called bracket creep, and this will also correct some of the inefficiencies and inequities in our present tax system."

TAGS: individuals | compliance | Finance | VAT rates | tax | business | value added tax (VAT) | tax compliance | tax incentives | law | Philippines | food | ministry of finance | legislation | tax rates | tax reform | Trade Union | trade | individual income tax | services | VAT goods & services classification | Tax

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