Dominguez: Tax reforms to generate revenues for massive public investments

ALTHOUGH there is a need for the Philippine government to raise an additional P366 billion per annum over the medium term for fresh investments in infrastructure, education, and public health, income taxes must be brought down to a “more reasonable” 25 percent from the current 32 percent. Instituting reforms in both tax administration and tax policy would help government collect enough revenues needed for its unprecedented public investments program, says Finance Secretary Carlos Dominguez 3rd.

This is why the Duterte administration has been pushing for the swift approval of CTRP or Comprehensive Tax Reform Program, in Congress, with a cut in personal income tax rates as its first package. “We are going to do that not only because it was a campaign promise, but, more importantly, because it makes good economic sense,” Dominguez says Friday in a speech before The 5th Business Forum, organized by The Manila Times, in Davao City. The lowering of corporate income taxes is covered in the succeeding package, he adds.