MANILA - Finance Secretary Carlos Dominguez III said Monday the administration of President Rodrigo Duterte will push for 2 more tax reform measures amid the disruptions caused by the COVID-19 pandemic.
Dominguez said the 2 new measures under the Comprehensive Tax Reform Program (CTRP) will revamp the country's property valuation system, and simplify the taxation of passive income, financial services and transactions.
The Finance chief said the measures will help boost the country's economic recovery.
“We are fully determined to restore the vigor of the Philippine economy at the soonest possible time. Even with the unprecedented crisis, the Duterte administration will continue to work hard until the last minute of its term to undertake the remaining reforms we had set out to do in our zero-to-ten-point socioeconomic agenda,” Dominguez said.
According to the DOF's CTRP page, Package 3 will "broaden" the tax base used for property-related taxes, thereby increasing government revenues.
Package 4, meanwhile, will make passive income and financial intermediary taxes simpler, more efficient and more competitive, the agency said.
Duterte signed Package 1 of the program or the Tax Reform for Acceleration and Inclusion (TRAIN) law in December 2017, and Corporate Recovery and Tax Incentives for Enterprises or CREATE last month.
The DOF is also supporting proposed amendments to the Foreign Investments Act (FIA), Public Service Act (PSA) and the Retail Trade Liberalization Act (RTLA), which Duterte certified as urgent.
The DOF also proposed to increase the mandated dividend remittance of government-owned and controlled corporations (GOCCs).
Dominguez is also pushing for the passage of the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery or the GUIDE bill.
Before the pandemic, the country's economy had been growing at an average of 6 percent.
In 2020, the gross domestic product contracted by 9.6 percent, its worst level since the end of World War 2.