MAI{ltA, PHlr.
rPPtr{Es I1i\TEDNESDAY I I SEPTEMBER 2ol
Fast-tracked tax measures
Multi-tasking House Members
(( managed to hurdle budget briefings
Citira in the teyel of the Hoirse Committee
was atrso on Appropriations in an innovation
read on 2nd
introduced by Speaker Alan Peter
Cayetano. Never done before in the
Beading House, simultaneous committee
last hearings weie heldi allowing niore
Mottday, than one Department to be heard
srSnWnS at a time. What happened is the
thai it may Chairman of the Committee on
be appwed Appropriations, Rep: Isidro Ungab,
opened the hearing, say for example
on Ihitd
at I a.m., give his opening remarks,
aild flinal then leave to open his next hearing
Beading 30 miriutes later. Repr Undab wil
wfv aoon, leave a team 0f Congressmen for each
committee, led by a designated
Vice-Chairman of Appropriations.
With this system, budget briefrngs
in the committeeleYel finished in
record-breaking time, beginning on
22 August, ending on 6 September
Yesterday 10 S€ptembbr, the plenary
deliberations of the budget started
eaxly at I p.m., and the llouse will
maintain this 1 p.m. schedule until
E September After this, there will
be another round of deliberations
in the plenary level, but most of the
contentious matters should have
been exhausted by then. Thus, the
Howe is well in its way of beating its
self-imposed deadline of I 0ctober,
the last scheduled day of session
before Congress enters recess, to have
the General Apuopdations Budget
approved on Thtud and Final Reading.
All this may seem hectic work, ard
it really is, So, it is ra.ther unthinkable
for any other measue to be Jassed
while budget hearing is ongoing.
IIonwer, the Congressmen have other
plans and intend to pass complicated
measures tlnt aie among ihe iegislafive
priorities of the Administration.
First, the bill increasing excise
tax on alcoholic drinks, tobacco
and vaping products was passed
as early as 22 August. Second,'on
Monday, the znd tax measure wAs
s
apprwed on Ttird and
Final Reading, Imorvn as
tlle Passi\€ Income and
Financial Intermediary
Taxation Aci (PIFTIA)
bill, which is also the
Department of Finance's
(DoT) 4th Tax Package.
Both bills will increase
government revenue,
fund the flagship
#BuildBuildBuild
prograrn, aid in economic
0u0 uAllls
Danen M. de lesus
grorth, and mtionalize
the complicated Philippines tax
system, that would eventually lead
to a safe and comfortable life for
Filipinos. the swift passage of these
tax measures.mayrbe credited to
House Ways and Means oommlttee
Chairman, Rep. Joey Salceda, a
renowned economist, ready to bat out
numbeB and statistics in an instant.
third - also on l{onda& the bill
anedding the Foreign Investments
Act, principally authored by Bep.
Victor Yap, was likewise approYed
and will likely breeze throdgh the
Senate where. a counteryart bil has
already been liled by Senator Win
Gatchalian this bill will unburden.
foreign investoB that intend to set rlp
shop in the Philippines as it wiU lessen
the requled number of local hires in
certain businesses, and allow the local
practice of foreign professionals.
However, the most-anticipated
among the pending measures liled
this Eth Congress should be DoF's
znd Tax Package, known a.s the
Corporate Income Tax and Incentiye
Rationalization Act (Citira), fornerly
coined as the IRABAHO bill in the
17th Congress. Citira was also read
on 2nd Reading last Mondray, signifling
that it may be approved on thtd and
I'inal Reading very soon.
Rep. Satceda is convinced of
the benefrts that Citira will bring,
despite the continuing objections
from certain stakeholders,
ulo^ge- 4 Y
particularly those from
the economic zones
whose tax incentives
will be reYoked. But
with the multitude of ''
incentives available in
the Philippin€ economy,
it makes perfect sense to i
rationalte all these for
purposes of simplifying
the dizzying tax.
structure we cu[ently
had. Among the obvious '
benefits of Citira will be
Sradual reduction of the expensive
Philippine corporate incorne tax
froin 30 perceni to 20 percentfrom '
2021 to 2029, Another landmark'
provision here is the recognition of
tramfer pricing by empowering the .
Commissioner to make signilicant
adiustments to reflect the exact and
accuiate tax income of companies
operating in the Philippines and in
other jurisdictions.
At the rate the
Ilouse leadership ((
is going on the
AA this
il'J,""i:1.$#,: !.aa..seem .
tax measures. it "ectu utofb
seems rhat whAJ. a'nd it rcallA
was planned. by is. So, it
the DoF to be is rqlher
passed during untltinLable
the entlre 6-year for anu other
term of President
Rodriso Duterte -"*,ir" to
oe Dassea
il*,i""tfl"J::,iin nuas"t
within 11" hao,ring is
agt eed l6-month orwir,g,
term of Speaker
Cayetano..It may be wise for
Secretary Carlos Dominguez, as well
as the oth€r Cabinet Secretaries, to
make the i,niost out of him, and strike
while tho.iion is sii[ blazing hot.
E mai,l,: da,mn d,4 e&ts @ g maitr. cottu
or fu,eet: @funanddatllc.