MANILA – The first part of President Rodrigo Duterte’s tax reform package may be passed in Congress as early as the first half of this year, a finance official said.
This includes lower income taxes for the middle class, which will be offset by higher rates for the “ultra rich” and the removal of some value added tax exemptions.
“We plan to do this by simplifying our tax system, making it more progressive and making it more efficient,” finance undersecretary Bayani Agabin told ANC.
Agabin said the finance department uncovered some 100 VAT exemptions. “Every time you give exemptions, this gives rise to tax leakages. We are seeking to plug that,” he added.
This includes lower income taxes for the middle class, which will be offset by higher rates for the “ultra rich” and the removal of some value added tax exemptions.
“We plan to do this by simplifying our tax system, making it more progressive and making it more efficient,” finance undersecretary Bayani Agabin told ANC.
Agabin said the finance department uncovered some 100 VAT exemptions. “Every time you give exemptions, this gives rise to tax leakages. We are seeking to plug that,” he added.
Duterte is also seeking higher excise taxes on fuel and car purchases under the reform push.
“I do believe that passage of this reform will signal a very strong change, both the political will in our system as well as a signal that the economic team is trying to do the right thing relative to collections versus spending,” Philippine Stock Exchange president Hans Sicat said.
“I do believe that passage of this reform will signal a very strong change, both the political will in our system as well as a signal that the economic team is trying to do the right thing relative to collections versus spending,” Philippine Stock Exchange president Hans Sicat said.
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