House approves TRABAHO bill on 3rd and final reading

ABS-CBN News

Posted at Sep 10 2018 04:27 PM

MANILA - The House of Representatives has approved on third and final reading House Bill 8083 or the Tax Reform for Attracting Better and High Quality Opportunities or TRABAHO Bill - the second package in the Duterte Administration’s comprehensive tax reform program.

A total of 187 members voted in the affirmative, 14 voted in the negative and 3 abstained from voting.

The TRABAHO Bill amends Section 4, 5, 20, 22, 27, 28, 34, 40, 50, 73, 112, 117, 119, 204, 222, 237, 237-A, 255, 256, 257, 258, 260, 261, 262, 263, 264, 265, 266, 275, 288, 290 and adds Sections 6A, 291, 292, 293, 294, 295, 296, 297, 2982, 299, 300, 301, 301A, 301B, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313 and 314 unde the National Internal Revenue Code of 1997 as amended.

House Bill 8083 seeks to encourage investments by bringing down the corporate income tax rate from 30 percent to 20 percent and rationalize investment tax incentives to enhance fairness, improve competitiveness, plug tax leakages and attain fiscal sustainability.

Likewise, it aims to ensure that the grant of fiscal incentives helps bring in the greatest benefits, such as higher and more dispersed investments, more jobs, and better technology.

The bill seeks to reduce the current 30 percent corporate income tax rate per two years , with the following timetable: 28 percent in 2021; 26 percent in 2023; 24 percent in 2025; 22 percent in 2027; and 20 percent in 2029.

It also proposes to grant fiscal incentives to registered activities of exporters and industries listed in the Strategic Investments Priority Plan.

It provides subsidies through school and housing vouchers, as well as allocate funding for universal health care from incremental revenue. Likewise, it appropriates a structural adjustment fund for displaced workers.

The TRABAHO bill is a product of six committee hearings of the Committee on Ways and Means, one technical working group (TWG), and numerous meetings with private sector participation.