The Duterte administration is planning to reduce the individual and corporate tax rates while indexing the almost two-decades-old brackets but would cut down on foregone revenues by restricting the benefit given away to investors as well as exemptions on value-added tax (VAT).
“Duterte's administration is sure to review the tax system, initially to update the income tax brackets and eventually to lowering corporate and individual tax rates. We would like to see our workers having more disposable income to do as they wish,” the next Finance Secretary Carlos G. Dominguez said to businessmen on the first day of “Sulong Pilipinas” Hakbang Tungo sa Kaunlaran” consultative workshop Monday.
Dominguez said that there is a need to “broaden the tax base even more to compensate for lower rates.”
The next Finance Chief with incoming Budget chief Benjamin E. Diokno said the possibility of changing the imposed taxes on fuel, which remained unchanged for almost two decades.
Diokno also said that they will thrust for is the rationalization of tax benefits being given away to investors, noting that there were about 200 laws allowing the grant to fiscal perks.