House panels OKs new tax measures to yield P75.2 billion revenues annually

MANILA, Philippines — The House Committee on Ways and Means yesterday approved tax measures that would generate at least P75.2 billion in new revenues for the government over the next year.

The committee, chaired by Albay Rep. Joey Salceda, had approved the unnumbered substitute to House Bills (HB) 375, 2111, and 3244 or the proposed Package 4 of Republic Act 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

“I assure President Marcos that his government will have the fiscal space it needs from Congress. My committee will continue to work with the tax collection agencies to improve tax administration, enhance enforcement, and make the experience of paying taxes more convenient,” Salceda said in a statement.

Package 4 of the Comprehensive Tax Reform Program, the core of which is PIFITA or Passive Income and Financial Intermediary Taxation Act, will generate P25.7 billion in new revenues.

On the other hand, VAT on foreign digital service providers will also yield some P11.7 billion in new revenues on the first year.

Salceda noted the new fiscal regime for mining is the “grandest and most desirable” of these reforms, generating some P37.5 billion in new revenues on its first year of implementation.

“All in all, if enacted, they will secure at least P74.9 billion in new revenues for PBBM’s (Marcos) administration,” he said.