THE House of Representatives’ ways and means committee on Tuesday approved the fourth package of the Comprehensive Tax Reform Package (CTRP) under the administration of President Rodrigo Duterte.
The panel, headed by Albay 2nd District Rep. Joey Salceda, voted in favor of House Bill (HB) 304 or the Passive Income and Financial Intermediary Taxation Act (PIFITA).
The measure, which previously failed to hurdle the 17th Congress, was approved after lawmakers moved to invoke Section 48 of the House Rules, advancing it for plenary deliberations.
The Department of Finance said the measure would complement the Tax Reform for Acceleration and Inclusion (TRAIN) by making fairer intermediary taxes, paving the way for a simpler taxation of passive income, financial services and transactions.
This covers taxes under the National Internal Revenue Code of 1997, primarily the passive income taxes, stock transaction tax and initial public offering tax, business taxes on financial intermediaries, and documentary stamp taxes.
With revenues pegged at P4.2 billion, the committee agreed to rationalize DSTs to promote capital mobility.
Salceda said proposed amendments on the bill included exempting non-documentary records under DSTs such as diplomas and transcript of records to benefit students; oath of office which covers barangay (village) officials and other elective officials before assumption of office; good moral standing certificate; affidavits and other certificates or notarized documents; proxies, certificate of no marriage record; baptismal certificates; and marriage licenses.
“This translates to about P450 million foregone,” Salceda told reporters. GLEE JALEA