Tax reform program's 'Package 2 plus' to be submitted to Congress by end-January

MANILA, Philippines — The Department of Finance on Tuesday said it plans to submit “package two plus” of the Duterte administration’s Comprehensive Tax Reform Program (CTRP) by the end of January.

In a speech during the 2018 inaugural meeting of Management Association of the Philippines, Finance Secretary Carlos Dominguez III said package two plus will cover more taxes on tobacco, alcohol, mining, coal, and casinos.

That measure is apart from CTRP’s “package two,” which seeks to gradually cut corporate income tax in order to put this levy at par with those of Southeast Asian competitors, as well as to remove tax incentives from sectors that do not need them.

Package two was submitted to the House of Representatives when Congress resumed the second regular session last January 15.

READ: DOF submits Package 2 of Tax Reform Program to Congress

On December 19, President Rodrigo Duterte signed into the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which aims to generate revenue to fund a multi-billion dollar infrastructure program key to the government's economic agenda.

The TRAIN law — the first of up to five planned tax reform packages — cuts personal income tax rates while projected revenues to be foregone will be offset by higher excise levies on petroleum and automobiles, among others.

EXPLAINER: How Duterte's new tax law or TRAIN can affect you

The DOF earlier said the other tax reform packages — which the government hopes to submit to Congress ahead of the 2019 senatorial and local mid-term elections — will involve property taxation, capital income taxation, as well as health, environment and luxury taxation.

READ: DOF lists priority legislative bills for 2018