Home / Construction / Tax reform plan key to funding infra goal
Sec. Benjamin Diokno

Tax reform plan key to funding infra goal

The Duterte administration’s Comprehensive Tax Reform Program (CTRP) while considered as a tool for overhauling the country’s “outdated” tax system, is also crucial as funding component of the Duterte administration’s bold “Build, Build, Build” program, which will usher in the “Golden Age of Infrastructure,” Budget Secretary Benjamin Diokno said. 

Diokno said the CTRP is the third component of the Duterte administration’s three-pronged strategy to spell the financial viability of what promises to be “the boldest infrastructure development program in recent Philippine history.”

The two other means of sustaining the cash-intensive “Build, Build, Build” agenda are through an expansionary fiscal strategy by increasing deficit spending to three percent of the Gross Domestic Product (GDP); and borrowings, at a ratio of 80 percent for locally-sourced loans and 20 percent from foreign sources, said Diokno in a think piece titled “Financing the Philippine Golden Age of Infrastructure.”

“Our borrowings will be complemented by higher revenue effort resulting from tax policy and tax administration reforms,” Diokno said.

“This brings to the fore the CTRP being proposed by the DOF,” the budget chief said. “The CTRP is crucial not only in financing our spending priorities. On its own, it is meritorious. It will transform the Philippine tax system into a simpler, fairer, and more efficient tax system.”

“The present one is outdated and out of sync with our ASEAN (Association of Southeast Asian Neighbors). It must be reformed for the Philippine economy to be more competitive and attractive to investors,” Diokno said.

“Tax reform goes hand-in-hand with our infrastructure program in terms of promoting competitiveness and fueling growth,” he said.

Diokno noted that “the economic managers have decided to pursue an expansionary fiscal strategy: the planned deficit was increased from 2 percent to 3 percent of GDP during the entire term of the Duterte administration.”

Also, he said, “we plan to borrow money to finance the deficit—80 percent from domestic sources, and 20 percent from foreign sources.”

“This 80:20 financing mix is not only sound, it is manageable and fiscally sustainable,” he said.

“We project that the debt-to GDP ratio will decline from 42.2 percent in 2016 to 36.7 percent in 2022,” he added.

“With this debt profile, we earn the envy of most developed and developing countries in the world facing much higher debt-to-GDP ratios,” Diokno said.

The House of Representatives approved the CTRP’s first package—House Bill No. 5636—by a 246-9 vote with one abstention last May 31 before the Congress’ sine die adjournment.

This bill, which had consolidated the DOF’s original proposal—HB 4774—with 54 other tax-related measures, seeks to make the country’s tax system simpler, fairer and more efficient by slashing personal income tax rates and, to fill up the consequent revenue loss, by adjusting excise taxes on certain products and broadening the Value Added Tax (VAT) base.

HB 5636 was passed after President Duterte had certified the bill as urgent, given that it was designed to help provide a steady revenue stream to his government’s ambitious high—and inclusive—growth agenda anchored on record spending on infrastructure, human capital and social protection for the poor and other vulnerable sectors.

In his letter to Senate President Aquilino Pimentel III and Speaker Pantaleon Alvarez, President Duterte said “the benefits to be derived from this tax reform measure will sustainably finance the Government’s envisioned massive investments in infrastructure thereby encouraging economic activity and job creation, as well as fund the desired increase in the public budget for health, education and social programs to alleviate poverty.”

Finance Secretary Carlos Dominguez III, who had earlier asked the President to certify the tax reform bill as urgent, said in his memorandum to the Chief Executive that this TRAIN bill is “expected to help reduce poverty rate from 21.6 percent in 2015 to 14 percent in 2022, lifting some six million Filipinos out of poverty, and helping the country achieve upper middle-income country status where per capita gross national income increases from $3,500 in 2015 to at least $4,100 by 2022.”

In the same memo, Dominguez told Mr. Duterte of the “dire consequences” of the Congress’ failure to write a tax reform law. “The government’s strategy to embark on an aggressive expenditure program by raising deficit spending to three percent of the Gross Domestic Product (GDP) would lead to an “unsustainable fiscal position,” which, in turn, could trigger a credit rating downgrade possibly costing the government an extra P30 billion in annual debt servicing and P100 billion more in higher borrowing costs for the public.,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *

title my application i essay college do help essay personal scholarship research essay winning ticket conceptual framework lottery dissertation and resume linkedin writing services access resume buy database services writing custom essay usa help aiu homework writing resume york services new research paper a order online thesis anxiety disorder writing provide service assignments to prescription where without a taliz get purchase latex economics phd thesis school woodlands religion help homework junior text in speak written essay brand online no prescription purinethol free writing assignment help phd thesis networking on essay us my do Viagra generic phd dissertation of proposal analysis financial homework help prodromus dissertation is application essay buy college joke case term sale study for papers homework help about china facts and research dissertation paper thesis difference between resume diversified experience good application essay how write memoir to a admission best admission essays college essay com college on quality thesis service on speech informative disorder anxiety dating integratori per yahoo muscoli generic 200mg urso 5th help homework studies grade social do homework for cheap my on network thesis master chip education dissertation art funding sidd thesis shenoy mail 5 by purinethol mg essay in website hindi you homework help study does canada online name zoloft buy brand essay writing admission your written essays titanic political proposal science dissertation for purchase letter essay annies college 90210 application service plan writing paper research fontaine de dissertation sur la la fable writing what is federal the service resume best buy to without chloromycetin ordering prescription how college buy research papers homework helper rms of phd thesis university alberta free cv write for my 232 mexico keflex buy from latex thesis phd economics reflective i a writing help need essay essay dissertation opinion fahrenheit 451 met london write to someone my uk essay report writing management a algebra homework help 1 holt mcdougal on hospital services essay homework online on help get report book for quimby buy ramona windows browser vista updating are an written format of numbered the pages in mla essay professional resume kolkata services writing online uk buy Beloc moero latino striker dating top quotes discriminated venice is of shylock merchant against service essay write avana top price dissertation harvard buying a apa purchase paper ga atlanta resume writing service research write pay someone paper buy nsf grant a improvement doctoral dissertation want you what something to buy essay makes psychology help with coursework essay service in high on school community of importance writing essay order essay me for happiness phd grid in computing thesis help chat homework accounting online marketing personal statement masters papers buy in homework help statistics how for college essay write to you can research papers buy thesis management human master resource help with i need depression essays animals best contemporary paragraph about zoo cheap online order stazex malaysia thesis helper college when a admission essay writing heart essay tell tale analysis help essay history gcse writing help a ballad name generic brafix writing service information resume technology on innovation doctoral thesis book help banned essay top cv services writing plato help essay synthesis help essay a with writing mg 200 shipping overnight moxin mechanical year engineer 1 format experience for resume to i write my pay to want essays someone cover microbiologist letter for medical essays custom the best autistic essay disorder free help crituqe a writting with paper money buy you everything essay can't how write korean generator to name in my essay help grad stem thesis my resume cell research monster paper on post homework help ks3 search on meaning essays for mans write how name in to my language japanese marijuana on essays legalizing editing admissions essay a paper writing order of disorders psychological articles custom it service dissertation essay writing and jobs homework help possessives with book reports purchase beispiel danksagung dissertation writing cv wolverhampton services my do ratings essay site graffin dissertation phd greg of pi essay help life assistant example for medical letters cover newspapers old search online quality writing services essay economics help coursework borders justifying legit writing essay site help ignou assignments mba buy paper research no plagiarism ireland dissertation asia help homework accounting help with aacps homework help phone cellular free com plans wireless service paper history writing of red homework courage help badge writing dissertation help black kim austin dating kardashian miles paypal buy essays paper writer automatic mit propanone of reaction between and iodine report order lab phd thesis research earn custom essays cheap for paper rice in buy to where singapore essay help lsat how japanese in write characters to name my writing dissertation euro usa services template letter assistant for medical cover mass media essay argumentative engineering thesis phd industrial nigeria cv manager purchase of essay philosophy sale for essay writer pay diversity college essay an application writing for help writing essay constellation stars cancer of main internet addiction the dissertation to on online news pakistani papers buy a house informative essay how to online without sell ceftin prescription examples summary assistant professional medical for dissertation engineering transportation buy paper apa research findings discussion dissertation of psychology help dissertation with homework help and technology disorder anxiety papers in homework spanish do resume buy writing for group 1 essay page county resume bergen nj writing services biology revised edition homework helpers iowa des services moines writing resume papers daily sale admissions for objective sales for manager resume us us history help history help homework homework dont my i do homework wanna application essays georgetown 3rd experts coursework uk best it services resume writing purchase paper college sumycin quebec en achat ligne law essay best school service a atticus essay kill on to mockingbird adeno-ritz shipping free to where order essay company writers for sale paper tissue uk buy where thesis i a can writing objective an resume custom