DOF to submit next package of tax reform by end January
Mary Grace Padin (The Philippine Star) - January 24, 2018 - 12:00am

MANILA, Philippines — The Department of Finance (DOF) is planning to submit to Congress a new tax reform package which seeks to adjust taxes on alcohol, tobacco, mining, coal and casinos.

During a speech before the local business community, Finance Secretary Carlos Dominguez announced the DOF’s intent to propose “Package 2 Plus” of its Comprehensive Tax Reform Program (CTRP) before Congress by the end of January.

“By the end of the month we shall also be submitting Package 2 Plus, which includes taxes on tobacco, alcohol, mining, coal and casinos,” Dominguez said during the 69th Management Association of the Philippines Meeting in Taguig City.

According to Dominguez, the package was created to consolidate two pending bills in Congress pushing for even higher tobacco excise taxes than the rates provided under the first package of the CTRP or the Tax Reform for Acceleration and Inclusion (TRAIN).

“There are two bills in the Senate right now, one by Manny Pacquiao and one by JV Ejercito. So we said, if they intend to put it, we will help them with it,” Dominguez said.

Pacquiao wants to raise the excise tax rate of tobacco products to P60 per pack from the current P32.50, while Ejercito is pushing for a P90 per pack rate. However, Dominguez said the final proposed rate is still up for discussion.

Secondly, Dominguez said Package 2 Plus follows the DOF’s plan to review the Sin Tax Law on tobacco and alcohol products.

“That was really planned originally. The sin tax was supposed to be reviewed but actually what they only adjusted is the cigarette tax. So there is still the alcohol tax that has not been reviewed. And according to the original sin tax law that should have been reviewed by the Congress,” Dominguez said.

In terms of mining tax, Dominguez said the bill would help rationalize the excise tax as well as other fees paid by mining firms. He said the bill would also seek to impose value-added tax on casino games.

The proposed tax adjustments on alcohol, tobacco, mining and casinos were originally included in the fifth package of the DOF’s tax reform program.

Package 2 Plus will now supplement Package 2 of the CTRP, which focuses on corporate income taxes and fiscal incentives.

Package 2, which was submitted to the House of Representative last January 15, proposes for the reduction of corporate income tax rates to 25 percent from the current 30 percent, and the rationalization of fiscal incentives being enjoyed by certain business sectors.

Meanwhile, Dominguez said the DOF is also planning to submit to Congress Package 3 and 4 of the CTRP by July 2018.

Philstar
Facebook
  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

SIGN IN
or sign in with
Read and share the latest news
whenever and wherever you are.
Top Stories
Features the most relevant stories,
exclusive content, analyses and special reports.
As It Happens
Get bite-sized highlights and up-to-date
information as the news breaks.
Latest
View the most recent
stories of the day.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
Log-in
Lorem ipsum dolor sit amet,
consectetur adipiscing elit.
Quisque justo est, auctor vel ullamcorper.
How to follow As It Happens stories
STEP 1
Click the story in the As it Happens section.
How to follow As It Happens stories
STEP 2
Click "Follow Story" for updates on the news.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Author
STEP 1
Click on the author's name in the article.
How to follow Author
STEP 2
Once you click on the author's name, you will be
brought to the Authors page. Click "Follow Author"
to stay updated on the author's works
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.
How to follow Tags
STEP 1
Click on a tag in the article.
How to follow Tags
STEP 2
When you click on a tag, it will take you to the
dedicated tag page where you'll see the article
viewed, along with other stories with that tag.

Click the "follow tag" button to stay updated on
the topic.
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Aliquam eu metus vitae felis tincidunt finibus ut id sapien. Integer volutpat dui eu malesuada dignissim. Sed varius justo nulla, fringilla convallis sem porta sed.