Approval of DOF’s tax reform version pushed

MANILA, Philippines — Sen. Pia Cayetano yesterday reiterated the Senate’s shared aspiration with Malacañang to get additional revenues to improve the government’s delivery of basic services after the House of Representatives passed a version that cut by almost half the government’s projected P32.94-billion revenues.

Cayetano, chairperson of the Senate ways and means committee, vowed to push for the approval of the Department of Finance (DOF)’s version of the administration priority measure providing additional excise taxes on alcohol products.

“I have an open mind to go towards the version of the DOF because I am with the administration. I don’t have any issue to try the best of my ability,” she said at the regular Kapihan sa Manila Bay media forum.

On Tuesday, the House of Representatives endorsed for Senate approval House Bill 1026 – Package 2 Plus B of the Comprehensive Tax Reform Program (CTRP) with 184 affirmative, two negative and one abstention.

The bill, however, will give the government P17 billion in revenues lower than the DOF-Department of Health version, which will generate P32.94 billion. This is because the House-approved cigarette products did not include regular cigarettes, according to Cayetano, citing the Tax Reform for Acceleration and Inclusion Law on the increased excise tax on cigarettes.

The senator said she wants to give equal airtime to manufacturers during her scheduled Senate hearings in the next weeks.

“My goal, you have to understand where I am coming from. I have always chaired the committee involved in the delivery of social services, (like) health, education and environment,” Cayetano said.

“A lot of them are very dear to me. That’s why I am excited to find the funding for that… In that sense, I am supportive of raising these funds,” she added.

The senator stressed she would have to adjust if the taxes would turn out to be excessive.

“We’re passing taxation measures not because it is being imposed upon us by any international body. We’re in a position where we are cleaning up our (own) house, not because we have to but because it’s the best thing to do,” she said.

HB 1026 seeks to amend Sections 141, 142 and 143 of Republic Act 8424, as amended, or the National Internal Revenue Code of 1997.

Cayetano’s committee is now conducting a series of public hearings on the CTRP as part of government’s effort to achieve its targets under the United Nations’ Sustainable Development Goals.

The CTRP includes proposals seeking to lower the corporate income tax (CIT) and rationalize tax incentives of businesses (Package 2); impose higher excise taxes on alcohol products and e-cigarettes (Package 2+); reform the property valuation system (Package 3) and rationalize capital income taxation (Package 4).

Cayetano said she plans to conduct a hearing every week to discuss the tax measures. – With Delon Porcalla, Paolo Romero, Jess Diaz, Sheila Crisostomo