Tax reform moving faster in capital market side: finance official

Michelle Ong, ABS-CBN News

Posted at Oct 24 2017 11:43 AM

MANILA - Tax reform proposals in the capital market are moving faster compared to other packages, a finance official said Tuesday.

The penultimate package aims to have a single tax rate for different financial products, said undersecretary Antonette Tiokno.

With a single rate, the market will become "more competitive," Tiokno said. "You don't have one product more advantageous than the other because it is not taxed. Competition now will be on the features."

Some taxes, including a proposal to raise taxes on dividends to 20 percent, may be "detrimental" to the market, said Ayala Corp chief finance officer Jose Teodoro Limcaoco.

"I don't know why we should be taxed for dividends. They're taxed as earnings already. Proposal for stock transactions tax -- could be detrimental to stock market. We need to a take a second look," Limcaoco said.

The first package of President Rodrigo Duterte's tax reform seeks to lower personal income tax rates while raising duties on fuel, sugar-sweetened drinks and cars.