By Mayvelin U. Caraballo, July 24 2018; The Manila Times
Image Credit to The Manila Times
Leading economists on Monday called for “urgent action” from Congress with regard to proposed tax reforms that would lower corporate income taxes and modernize fiscal incentives.
“As Congress deliberates on the second package of the reform, we express our support for the main principle of a corporate tax system that is broad-based and relative to our peers in the region,” the economists said in a statement released by the Finance department.
Signing the statement of support were former Finance Undersecretary Romeo Bernardo; former Socioeconomic Planning secretaries Gerardo Sicat, Dante Canlas, Felipe Medalla and Arsenio Balisacan; former Philippine Institute of Development Studies President Gilberto Llanto; University of the Philippines assistant professor Renato Reside Jr.; and Monetary Board member Bruce Tolentino.
Package 2 proposes to gradually lower the country’s corporate income tax rate — said to be among the highest in the region — to 25 percent from 30 percent and also modify tax incentives to make these “performance-based, targeted, time-bound and transparent.”
The second of five packages under the Duterte administration’s Comprehensive Tax Reform Program was submitted to the House of Representatives in January but has stalled since it was filed in March as House Bill 7458.
The House will begin deliberating the measure this week, the Finance department said.