MANILA, Philippines – Finance Secretary Cesar Purisima on Wednesday stressed the need for a complete revision of the country's National Internal Revenue Code (NIRC) rather than just amending portions of the law.
He said instead of only adjusting corporate and individual income tax rates, government should look into revisiting the entire tax structure.
“My proposal is instead of a piecemeal one, we revisit the whole thing and hopefully it will be more equitable, more progressive, and more competitive but with an impact of making it more revenue buoyant and revenue positive,” Purisima said.
Purisima is also urging Congress to investigate tax exemptions and other tax perks provided by the government to certain individuals and sectors.
The finance chief has been pushing for the Tax Incentives Management Transparency and Accountability (TIMTA) Act, the rationalization of fiscal incentives, the reform of the fiscal regime for mining and the Customs Modernization and Tariff Act (CMTA).
“The goal is how you’ll make it friendlier to both investors and individuals but at the same time address our needs as government. We can’t have all these programs and not have a source for it,” he said.
Purisima believes revising the tax structure won’t take long if given priority by lawmakers.
He gave his assurance that the Department of Finance is willing to cooperate with Congress on the proposed reduction of tax rates.