MANILA - The Department of Finance (DOF) said the Tax Reform for Acceleration and Inclusion (TRAIN) bill passed by Congress is just the initial phase of the first comprehensive tax reform program (CTRP) package of the Duterte administration.
Finance Secretary Carlos G. Dominguez III told reporters last Friday that the TRAIN bill ratified by Congress is “package 1-A,” and that the second part of the measure will be passed in the first quarter of 2018.
Based on DOF’s latest estimate, TRAIN 1-A will yield about P92 billion, lower than the initial estimate of P130 billion.
"Congress has passed two-thirds of the needed revenue this year and is expected to pass the balance in early 2018. In the coming months, we shall be proposing to Congress the next installment," Dominguez said.
The second part will be composed mainly of tax administrative measures, he said.
"The legislature has committed that they will pass the second part of the tax package one by the first quarter of next year and that will involve the tax amnesty as well as motor vehicle taxes, and raising bank secrecy in the case of in criminal cases," Dominguez said.
Government says the TRAIN will ease taxes on 99 percent of income taxpayers.
Dominguez said 70 percent of the incremental revenue will go to the administration's Build, Build, Build program while the rest will go to social services.
"Package one also raises significant revenues to fund the presidents priority and social infrastructure programs to reduce poverty from 21.6 percent to the targeted 14 percent by 2020," Dominguez said.