The Philippines: Tax amnesty bill eyed for passage in Jun 18: DOF

Centennial Asia > The Asian Pulse > Daily News > The Philippines: Tax amnesty bill eyed for passage in Jun 18: DOF
  • May 22, 2018
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  • The Department of Finance (DOF) is seeking the approval of Congress for the proposed tax amnesty bill by Jun 18, Finance Secretary Carlos Dominguez said on 21 May 18.
  • Dominguez said the government is pursuing the passage of the succeeding packages of the Comprehensive Tax Reform Program (CTRP) to support the country’s massive infrastructure program. Among these is Package 1B that includes the implementation of a tax amnesty program, which will be rolled out within 2018 if Congress passes the bill as scheduled.
  • Earlier, Dominguez said the DOF is supporting House Bill 7105, filed by House speaker Pantaleon Alvarez, majority leader Rodolfo Fariñas, and House Ways and Means chairman Dakila Carlo Cua.
  • The measure aims to enhance revenue administration and tax collection by granting an amnesty on all unpaid internal revenue taxes imposed by the government.
  • Under the bill, taxpayers who wish to seek for amnesty should pay a rate of 8% of their net worth covering taxable year 2017, or PHP10,000 to PHP10mn–depending on their taxpayer classification–whichever is higher.
  • Package 1B also involves adjustments in the Motor Vehicle Users Charge and amendments in the bank secrecy law. The package aims to supplement the Tax Reform for Acceleration and Inclusion (TRAIN) law.
  • Meanwhile, Dominguez said the Package 2 of the CTRP is also progressing at a good pace in the Congress. The tax package seeks to lower corporate income tax rates while rationalizing the fiscal incentives system.
  • Package 3 and 4, covering reforms in property and capital income taxation, are set for submission to the Congress by the third week of Jul 18, he said.
  • Meanwhile, Dominguez said the DOF also wants Congress to pass a bill that will lift quantitative restrictions on rice and instead allow the importation of the commodity at a 35% tariff. He said the measure would help stabilize the supply and lower the retail price of rice in the country.
  • The finance chief said the DOF is also pushing for the implementation of a national ID system to enhance the efficiency of transactions in the economy.

External Link: https://www.philstar.com/business/2018/05/22/1817361/tax-amnesty-bill-eyed-passage-june-2018

22-May-2018