Budget department on Wednesday remained confident that it will be able to secure additional revenues for the administration’s priority projects, despite lowered target revenues to around P92 billion following the passage of Republic Act No. 10963, or the Tax Reform for Acceleration and Inclusion, the first phase of his administration’s comprehensive tax reform package (CTRP).
In a news briefing, Diokno said that should Congress passes the remaining provisions in the tax reform package include tax amnesty, tax administration, and amendments to the bank secrecy law—the government will be able to raise enough funds for the government’s infrastructure and human capital development initiatives.
“We are not really concerned about that, kasi nga there will be a package that will be tackled and we expect that to be approved in the first quarter of 2018,” he added.
On Tuesday, Finance Secretary Carlos Dominguez said that Congress is set to pass a balance of one-third is expected to be passed by Congress in early 2018—involving provisions on the estate tax amnesty, a general tax amnesty, the proposed adjustments in the Motor Vehicle Users Charge and amendments to the bank secrecy law and automatic exchange of information.
“The legislature has committed that they will pass the second part of the tax package one by the first quarter of next year and that will involve the tax amnesty as well as motor vehicle taxes, and raising bank secrecy in the case of in criminal cases,” the Finance chief said.
The final ratified version also includes tax administration reforms, such as a mandatory fuel marking program and a system that would enable the Bureau of Internal Revenue to check real time the financial submission of large taxpayers.
The Finance Department in its original proposal to Congress estimated that government revenues would result into P130 billion, only to be reduced following deliberations in Congress.
The new tax law exempts those earning below P250,000 from paying income tax and adjusts excise taxes on fuel and automobiles as revenue compensating measures.