15 trade groups back tax package

Fifteen foreign and local business organizations have appealed to Mala­canang and the Congress to give top priority to the Comprehensive Tax Re­form Program (CTRP) and 11 other legislative proposals that aim to improve the country’s investment climate, create more jobs, sustain the growth momentum and clear the way to economic inclusion.

In a letter to Executive Secretary Salvador Medialdea, these organizations belonging to the Philippine Business Groups – Joint Foreign Chambers (PBG-JFC) said they believe the CTRP and the other economic reform measures they have recommended for swift approval by the legislature are all “in line with the 10-point socioeconomic agenda of the Duterte administration.”

Alongside the CTRP, the 15 business groups also urged Malacanang to include, among others, the lifting of the constitutional restrictions on foreign ownership limits and amendments to the Bank Secrecy Law in its priority agenda for discussion in the next meeting of the Legislative-Executive Development Advisory Council (LEDAC).

These PBG-JFC member-organizations also called for the swift approval of the following proposed legislation now pending in the Congress: reforms in the Apprenticeship Program implemented by the Technical Education and Skills Development Authority (Tesda), amendments to the Build-Operate-Transfer law, the Freedom of Information bill, amendments to the Corporation Code, reforms in the telecommunications sector, the Water Sector Reform Act, amendments to the Public Service Act, emergency powers to address the traffic and transportation crisis and amendments to the Retail Trade Liberalization Act.

“All constitute reforms that will improve the business and economic climate of the Philippines and result in more investments, jobs, and inclusive growth,” read the letter, a copy of which was furnished Finance Secretary Carlos Dominguez III.

The 15 representatives of the business chambers and associations who signed the letter were: Ernesto Ordonez, chair of the Alyansa Agrikultura; Bruce Winton, president of the American Chamber of Commerce of the Philippines, Inc.; Tom Grealy, president of the Australia-New Zealand Chamber of Commerce of the Philippines, Inc.; Nestor Tan, president of the Bankers Association of the Philippines; Julian Payne, president of the Ca­nadian Chamber of Commerce of the Philippines, Inc. ; Guenter Taus, president of the European Chamber of Commerce of the Philippines, Inc.

Benedicta Du Baladad, president of the Financial Executives of the Philippines; Calixto Chikiamco, president of the Foundation for Economic Freedom; Ike Amigo, president and CEO of the IT and Business Process Association of the Philippines; Yoshio Amano, president of the Japanese Chamber of Commerce of the Philippines, Inc.; Ho-Ik Lee, president of the Korean Chamber of Commerce of the Philippines, Inc.; Edgar Chua, chairman of the Makati Business Club; Marife Zamora, president of the Management Association of the Philippines; Dan Mollov, president of the Philippine Association of Multinational Companies Regional Headquarter Inc.; and Danilo Lachica, president of the Semiconductor and Electronics Industries in the Philippines, Inc.

Relaxing the provisions of the bank secrecy law for tax fraud cases is actually one of the complementary measures to the CTRP that the Department of Finance (DOF) has proposed to the Congress in endorsing House Bill No. 4774, which covers the first package of this DOF tax reform plan.

Rep. Dakila Carlo Cua is the author of HB 4774 and chairperson of the House ways and means committee, which has started public hearings on this CTRP bill.

Package 1 of the CTRP aims to lower personal income tax rates as well as donor and estate taxes, while adjusting the ex­cise rates for automobiles and petroleum products, and expanding the VAT base but retaining exemptions enjoyed by senior citizens and persons with disabilities.

Further reforms being considered by the Congress to complement HB 4774 include imposing a tax on sugar-sweetened beverages, indexing the motor vehicle user’s charge to inflation, and granting an amnesty to past estate tax cases.