THE Department of Finance (DOF) is confident that Congress will approve the revenue streams proposed under the first package of the comprehensive tax-reform program (CTRP), pointing out that it should be sufficient to fund both the social programs and infrastructure projects of the Duterte administration.
Finance Secretary Carlos G. Dominguez III said the Development Budget Coordination Committee hopes that both houses of Congress will adopt the revenue proposals under package one for the government’s various projects.
“You know we are confident the legislature will come up with revenues that will be sufficient to fund all the various projects of the President, including both the social side, the educational side and the infrastructure side,” Dominguez told financial reporters.
The finance chief pointed out the progress of the first package, which is on track with the government’s projected timeline, and it is expected to be scrutinized by the bicameral committee in mid-November this year.
“We have every confidence that it will happen. In fact, the debates were concluded already, and we are just helping the Senate to do more calculations on their proposals,” he added.
The House version dubbed as the Tax Reform for Acceleration and Inclusion Act is expected to generate around P130 billion in revenues, while the Senate version under Senate Bill 1592 is estimated to generate revenues of P59.9 billion.
Under the DOF’s original proposal, an estimated P157 billion in revenues will result from the reduction of personal income-tax rates while implementing offsetting measures like the expansion of the taxpayer base, increasing excise tax on fuel and automobile products, as well as lifting some exemptions on value-added tax (VAT).
“I am optimistic that the final bill will be closer to the House version. The personal income-tax rate hasn’t been changed since the time of [former President Fidel V.] Ramos, it has to be adjusted,” Budget Secretary Benjamin E. Diokno said.
Dominguez earlier said the DOF decided to introduce the CTRP through a series of packages rather than as a whole so that each would have a better chance of being approved by Congress at a much faster pace than it had done with previous tax-reform programs.
On top of enabling the government to better invest in people through better infrastructure, superior education, sufficient health services, adequate housing and reliable social protection, the CTRP will also consolidate the country’s macroeconomic position, ensure quality jobs for young Filipinos and create a dynamic business environment, according to the finance chief.