The Department of Finance advocates for the passage of seven essential tax initiatives during the legislative assembly’s current term.
MANILA — The Department of Finance (DOF) has identified and pushed for the speedy enactment of seven critical tax measures in the 19th Congress, signaling a robust commitment to financial reforms that aim to boost the nation’s economy and public service programs.
During a press briefing on Monday, they outlined the proposed legislative initiatives to simplify tax systems, increase revenue collection, and further stabilize the country’s fiscal health amidst global economic challenges.
The key measures include:
- Rationalization of Fiscal Incentives: This aims to streamline the existing incentives given to businesses, ensuring that they foster genuine economic development and equitable benefits for the Filipino people.
- Estate Tax Reforms: Addressing the intricacies and inefficiencies of the current system, this reform will simplify processes and reduce the potential burden on grieving families.
- Excise Tax Adjustments: A proposal to recalibrate taxes on select products, aligning them with global best practices to ensure consumer protection and revenue optimization.
- Digital Economy Taxation: Recognizing the growing digital landscape, this measure ensures that digital transactions and online businesses contribute their fair share to the nation’s coffers.
- Green Taxation: A forward-looking initiative that imposes taxes on activities harmful to the environment, encouraging industries to adopt more sustainable practices.
- Corporate Tax Harmonization: Addressing the corporate landscape’s diverse needs, this proposal simplifies tax obligations and incentivizes businesses to invest and grow.
- Tax Administration Enhancements: Strengthening the tax collection system by adopting technological advancements and best practices to reduce leakage and ensure compliance.
The Secretary emphasized, “The enactment of these measures will not only enhance our economic resilience but also ensure that the country remains on a growth trajectory that benefits every Filipino.”
Business and civil society stakeholders have expressed both anticipation and concerns over the proposed measures. However, the consensus appears to lean towards the necessity of these reforms in light of the nation’s evolving economic and social landscape.
Opposition members in Congress, while cautious, have shown a willingness to engage in constructive dialogue to refine the proposals further. As the debates and discussions begin, all eyes will be on the 19th Congress and the DOF’s ability to collaborate and navigate these ambitious reforms to fruition.
As the country grapples with the aftermath of the pandemic and the challenges of a digital, interconnected world, these tax measures could pave the way for a more robust and inclusive Philippine economy.