“Revenue collections will start to taper off in 2021 as the unified and lower tax rates are set fully in place,” Chua said. HB 8645 or the Passive Income and Financial Intermediary Taxation Act contains package four of the Duterte administration’s Comprehensive Tax Reform Program (CTRP). Citing data from the Bangko Sentral ng Pilipinas (BSP), Chua said unifying the tax rates would benefit 75 percent of deposit account holders who are mostly small savers. It would remove barriers to capital market development, including the tax on initial public offering (IPO), and adopt a regionally competitive tax system. If passed into law, Chua said the bill would reduce the 80 tax rates currently in the financial sector to only 41.

Source: Philippine Star December 13, 2018 16:22 UTC