SSC throws full support to CTRP

MANILA, Philippines -  The Social Security Commission (SSC) has expressed its full support for the Comprehensive Tax Reform Program (CTRP) package being pushed by the Department of Finance (DOF) in Congress.

In a resolution, the SSC, the governing body of the Social Security System (SSS), said the CTRP package as contained in House Bill 5636 would help create more jobs and further invigorate the economy.

These would, in turn, have a positive effect on the financial viability of the pension fund for the private sector, the SSC said.

“The Commission expresses its full support to the comprehensive tax reform package being proposed to Congress by the DOF as the tax reform would generate more employment and further invigorate the domestic economy with positive effect to the financial viability of the SSS,” said the SSC.

SSS chairman Amado Valdez and its vice chairman-president Emmanuel Dooc along with SSC members Diana Pardo Aguilar, Arthur Amansec, Jose Gabriel  La Viña, Anita Bumpus Quitain, Michael Regino and Gonzalo Duque and ex-officio member Labor Secretary Silvestre Bello III all signed the resolution.

HB 5636 or the Tax Reform for Acceleration and Inclusion Act consolidates all tax-related bills in the Lower House, including House Bill 4774 which contained the first package of the DOF’s CTRP.

Finance Undersecretary Karl Kendrick Chua earlier expressed optimism that the bill would hurdle the House plenary before the Congress adjourns on June 2.

The key features of bill include the lowering of personal income tax rates indexed to cumulative Consumer Price Index inflation every three years, unified estate and donor’s taxes at a flat rate of six percent, and removal of VAT exemptions to broaden the tax base.

It also includes provisions on the increase of excise tax for petroleum products, except liquefied petroleum gas used as feedstock, at a staggered basis from 2018 to 2020 but with no indexation to inflation and a five-bracket excise tax structure for automobiles with a two-year phase-in period for the tax increases.

Earlier, Dominguez has said the CTRP would help raise enough funds to bankroll the massive expenditure program to be undertaken by the Duterte administration to sustain economic growth and reduce poverty in the country.

He added the CTRP would be the “cornerstone” of the funding for the government’s “Build, Build, Build” infrastructure program, which will require some P8.4 trillion over the medium term.