The House Ways and Means Committee chair encouraged the Department of Education (DepEd) on Wednesday…
Fiscal reforms would bring in P75 billion in fresh revenue, says the House leader
After being passed into law, a House speaker claimed on Wednesday that the budgetary measures agreed by the committee would bring in at least PHP74.9 billion for the administration of President Ferdinand Marcos Jr.
Representative Joey Salceda of Albay’s 2nd district, who chairs the House ways and means committee, claimed that his panel had finished all of the Marcos administration’s main tax proposals.
Salceda stated that as of today, the committee has already approved actions that would result in at least PHP74.9 billion in additional income during the following year.
The proposed Package 4 of Republic Act 10963, better known as the “Tax Reform for Acceleration and Inclusion (TRAIN) Law,” was approved by the panel at the virtual hearing on Wednesday.
The legislation, originally known as the proposed Passive Income and Financial Intermediary Taxation Act (PIFITA), aims to make the taxation of passive income, financial intermediaries, and financial transactions easier to understand, more equitable, efficient, and competitive on a regional level.
The National Internal Revenue Code (NIRC) of 1997, as modified, would be altered in some areas to lower the documentary stamp tax (DST) levied on lottery tickets from PHP0.20 to PHP0.10.
Salceda said that while this would result in income losses for the government, it would help to prevent the Philippine Charity Sweepstakes Office’s (PCSO) earnings from collapsing in the long run as a result of increasing ticket costs.
PIFITA, the centerpiece of Package 4 of the Comprehensive Tax Reform Program, will bring in PHP25.7 billion in new income, he claimed.
The panel also decided to include the Department of Finance’s (DOF) and the Department of Trade and Industry’s (DTI) request to repeal the TRAIN-era excise tax exemption for pickup vehicles in the measure.
The panel also adopted the “Philippine Mining Fiscal Regime Act” during the same session.
The largest and most laudable of these measures, he noted, was the new fiscal regime for mining, which produced over PHP37.5 billion in additional revenues in its first year of operation.
He stated that the proposal imposing a VAT of 12% on foreign digital service providers (DSPs), which was passed at the committee level last week, is anticipated to generate about PHP11.7 billion in additional revenues in the first year.
“By doing this, he will be guaranteed the financial room he needs to achieve the assumptions of the medium-term fiscal framework, which call for a 0.3 percentage point annual increase in tax revenue. In fact, these three measures somewhat exceed that goal “explained he. “I guarantee President Marcos that Congress will provide the necessary fiscal headroom for his administration.”
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