PH set to join world’s fast-growing, high-income economies

Approximately one generation from now, the Philippines will be among the world’s fast-growing, high-income economies, Finance Secretary Carlos Dominguez III said Thursday before the Manila Overseas Press Club (MOPC).

However, for this to become a realization Dominguez said Duterte administration’s Comprehensive Tax Reform Program (CTRP) is needed.

“We are hopeful the first package will turn into law before the year ends,” said Dominguez.

“We have reached the make or break point in our economic emergence. Tax reform will be key to making it to the club of fast-growing, high-income economies,” he said.

According to Department of Finance, TRAIN or Package One of the CTRP aims to slash income tax rates for majority of individual taxpayers, while generating additional revenues for the government’s massive spending on infrastructure and social services via the expansion of the value-added tax base, and adjustments in the excise taxes on fuel and automobiles, among other measures.

The House of Representatives approved its version of TRAIN as House Bill No. 5636 last May 31, while the Senate Ways and Means Committee has filed its version as Senate Bill 1592 last September 20. The Senate is set to start plenary debates on its TRAIN version later this month.

Package Two of the CTRP covers corporate income taxes and the modernization of fiscal incentives. Package Three covers property taxation, Package Four deals with capital income taxation, and Package Five covers environment and luxury taxation and health measures.

“With all these packages in place, we can assure the next generation of Filipinos fiscal stability, substantial public spending on the social goods and a high growth rate for the economy,” Dominguez said.