The passage of the first package of the proposed Comprehensive Tax Reform Program (CTRP) in the Lower House of Congress last week is credit-positive for the Philippines because it will address the government’s weak revenue generation, credit ratings agency Moody’s Investors Service said. Dubbed the Tax Reform for Acceleration and Inclusion (TRAIN), the CTRP’s first package was approved by the House of Representatives by a 246-9 vote with one abstention on May 31 before the Congress’s adjournment. The Act aims to lower income taxes and make up for the consequent revenue loss by plugging tax leakages, limiting value-added tax (VAT) exemptions and adjusting excise taxes on fuel, among other measures. The TRAIN is a consolidation of the original tax reform bill—House Bill 4774—with 54 other tax-related measures. Govt capacity for reformsDe Guzman also stressed that the passage of the tax reform bill also demonstrates the capacity to implement reform amid the political controversies around the government’s focus on security and the war on drugs.

Source: Manila Times June 05, 2017 17:03 UTC