Some 164 members of the Mandaue Chamber of Commerce and Industry (MCCI) attended the tax reform roadshow on March 9 at the Cebu Parklane International Hotel. The event was designed to inform the public on the newly enacted Tax Reform for Acceleration and Inclusion (TRAIN) law, corporate income tax reform, and fiscal incentives modernization.
The roadshow was organized by the Philippine Chamber of Commerce and Industry in partnership with Department of Finance and USAID Facilitating Public Investments Project. It was supported by MCCI and Cebu Chamber of Commerce and Industry.
TRAIN or Republic Act 10963 is the first package of the comprehensive tax reform program (CTRP) conceived under the administration of President Rodrigo Duterte. According to DOF, it aims to correct several deficiencies in the tax system to make it “simpler, fairer, and more efficient”.
Its implementation consequently lowers the personal income tax, simplifies the estate and donor’s tax, expands the value-added tax base, increases the excise tax of petroleum products, increases the excise tax of automobiles, and imposes excise tax on sweetened beverages.
Trinidad Rodriguez, director of the National Tax Research Center who presented the provisions and fiscal impact of CTRP’s Package 1, said that 70 percent of the funds collected from TRAIN will go to infrastructure projects, such as mass transport and new road networks to address congestion, military infrastructure, sports facilities for public schools, and potable drinking water supply in all public places, among others.
The remaining 30 percent will fund social services, including programs for sugar farmers, social mitigating measures and investments in education, health, social protection, employment, and housing for poor and near-poor households, and unconditional cash transfer to the poorest 10 million households.
DOF Undersecretary Karl Kendrick Chua presented during the event the CTRP’s proposed Package 2 that covers corporate income tax reform and fiscal incentives modernization. It aims to lower the corporate income tax rate, improve compliance by simplifying tax rules for corporations, strengthen governance of incentives, broaden tax base, rationalize investment tax incentives, and improve investments menu, among others.
The proposed reform is anchored on four general principles: performance-based, targeted, time-bound, and transparent. #