ADB backs DOF’s ‘progressive’ excise tax reforms

Date Posted : February 20, 2017

ADB backs DOF’s ‘progressive’ excise tax reforms

Date Posted : February 20, 2017

The Asian Development Bank (ADB) has expressed its support for the proposed reforms in the excise taxes of automobiles and petroleum products being pushed by the Department of Finance (DOF) as these are highly “progressive tax measures” that would help support President Duterte’s 10-point socioeconomic agenda.

In his recent meeting with Finance Secretary Carlos Dominguez III, ADB President Takehiko Nakao said the Bank is also looking forward to the Philippines’ hosting of its 51st annual meeting of the Board of Governors that will be held in Manila on May 3-6 in 2018.

The ADB head also updated Dominguez on the preparations for the Bank’s 50th annual meeting, which will be held on May 4-7 this year in Yokohama, Japan.

In his letter sent earlier to Nakao, Dominguez, on behalf of the government, said that “Following the Bank’s milestone of celebrating its 50th anniversary, it will be [the Philippines’] pleasure to host the succeeding annual meeting and launch the Bank’s proposed vision for the coming years.”

Discussing a wide range of issues with Dominguez during the meeting, Nakao said he agrees with the DOF proposal to adjust the excise taxes on automobiles and petroleum products and acknowledged that these are “progressive tax measures.”

The Bank also projected that the DOF’s proposed tax reform program would improve the business environment and sustain further growth and that revenue losses from the proposed reductions in personal income taxes (PIT) will be offset by broadening the value-added tax (VAT) base and increasing oil excise taxes.

“If successfully implemented, the new government’s development agenda to step up spending on infrastructure, implement tax reforms, and cut red tape will sustain high growth rates and increase job creation,” ADB country director for the Philippines Richard Bolt had said in earlier projecting the country’s 2017 GDP growth at 6.2 percent.

At the onset of the Duterte administration, the DOF immediately buckled down to work to craft a tax reform plan that would make the current system simpler, fairer and more efficient while raising additional revenues for the Duterte administration’s unprecedented public spending on infrastructure, human capital and social protection for the poor.

The first package of the DOF-proposed tax reform program is contained in House Bill No. 4774, which was filed last January by Rep Dakila Carlo Cua, who chairs the ways and means committee.

HB 4774 consists of a significant reduction in personal income tax (PIT) rates plus a corresponding set of revenue-compensating measures, which include lowering the rates for estate and donor’s taxes, expanding the value-added tax (VAT) base but retaining exemptions for senior citizens and persons with disabilities, and adjusting automobile and fuel excise taxes.

In the meeting, Nakao also expressed his deepest condolences to the victims of the recent earthquake in Surigao and reiterated ADB’s offer of assistance in mobilizing resources to help the affected communities.


-oOo-

Date Posted February 20, 2017

More on TaxReform News

YEARENDER: DOF crafts “game-changing” tax reform package in 2016 →

Date Posted: January 4, 2017

The Department of Finance (DOF) completed in less than 90 days into the Duterte administration … Continue reading YEARENDER: DOF crafts “game-changing” tax reform package in 2016

Ex-NEDA chief says slight, temporary inflation hike under tax reform won’t hurt low-income earners →

Date Posted: July 2, 2017

Former National Economic and Development Authority (NEDA) director-general Felipe Medalla said the slight, temporary inflation … Continue reading Ex-NEDA chief says slight, temporary inflation hike under tax reform won’t hurt low-income earners

Dominguez: BIR, BOC pursuing reforms to plug tax leakages, increase revenues →

Date Posted: July 11, 2017

The Bureaus of Internal Revenue (BIR) and of Customs (BOC) are currently pursuing reforms in … Continue reading Dominguez: BIR, BOC pursuing reforms to plug tax leakages, increase revenues

WE RECOMMEND

Over 1,000 entrepreneurs take part in ‘Sulong’ regional forums

Date Posted: April 29, 2019

More than 1,000 entrepreneurs, mostly representing small and medium enterprises (SMEs), were consulted by the … Continue reading Over 1,000 entrepreneurs take part in ‘Sulong’ regional forums

Join our mailing list for news and information about tax reform #TaxReformNow
The Department of Finance (DOF) is the government’s steward of sound fiscal policy. It formulates revenue policies that will ensure funding of critical government programs that promote welfare among our people and accelerate economic growth and stability. Read More..

Department of Finance | TaxReform

BSP Complex, Roxas Blvd., 1004 Metro Manila, Philippines
(+632) 8525.0244
Scroll Up