MANILA - President Rodrigo Duterte's first tax reform package will generate P1.16 trillion in revenues in the next five years, boosting his ambitious infrastructure program, the Department of Finance said Tuesday.
If the bill as passed by the House of Representatives last week is kept, it will generate P133.8 billion next year, P233.6 billion in 2019, P272.9 billion in 2020, P253 billion in 2021 and P269.9 billion in 2022, the DOF said in a statement.
The Senate needs to pass counterpart legislation before Duterte can sign the tax measure into law. Both houses of Congress will resume sessions on July 24.
The House bill seeks higher duties on fuel, cars and sweetened beverages to offset a reduction in personal income taxes.
Duterte plans to build P8 trillion in new roads, bridges and airports to sustain the momentum of one of Asia's fastest-growing economies.
Finance Secretary Carlos Dominguez said the infrastructure program would be funded using tax revenues and borrowings.
"It's just like you are a company where you have a project you put up your own capital which is from your own resources… and you borrow the rest. You want to have a mix of your own resources and borrowing to come up with a stable and reasonable, conservative plan," Dominguez said.