GALEZ, Elijah Richmond A.

11 – Provincia Germaniae

Tax Reform: A win-win for Filipinos

According to the article issued the Department of Finance which was published last June 9,
2017, the House of Representatives passed the tax reform package last May 31 with a majority of
246 congressmen who voted for it, which represented the 90% population of the Filipinos. This
manifested the immense validation from the House because it benefits more than half of the
Filipinos. Finance Secretary Carlos Dominguez III stated that this approval of the Comprehensive
Tax Reform Program (CTRP) is a “win-win” package for the Filipinos as it attains the increase of
the workers’ purchasing power and the increase of the poor’s’ expenditure. The first package of
the CTRP, also known as the Tax Reform on Acceleration and Inclusion Act will be used for
enhancing infrastructure, housing, education, health, and social protection that is estimated with
the worth of P133.8 billion in 2018 alone, that represents 0.8% of the Gross Domestic Product.

Dominguez also expressed that the Department of Finance (DOF) and other agencies under
the economic team of the Government will make an extra effort to guarantee that the Senate will
deliver an equivalent or enhanced version of the TRAIN that is in lined with the DOF proposal for
its next session in July. Also he stated that the DOF shall sustain in instituting reforms in the
Bureaus of Internal Revenue (BIR) and of Customs (BOC) to enhance the administration of taxes
and maximize the collection of the incomes.

The article presented was well discussed with its supporting facts and figures from the
different references from the DOF, BOC, BIR & Customs, the Development Budget Coordination
Committee (DBC), and the Philippine Stock Exchange (PSE). The composition did not show any
unfairness among the events of the approval of the tax reformation by the House of
Representatives. Thus, the flow and transition of the narrative are arranged and structured
systematically. It started with an introduction explaining the occurrence of the agreement of the
CTRP from Duterte’s Administration.
 Moreover, the narrative indicates that the Philippine Stock Exchange (PSE) index went up
by 90.37 points or 1.15% to close at 7,927,49 last June 1, or the day after the House agreed upon
the HB 5636. Then, the narrative was reinforced with its supporting points from the Moody’s
Investor Service, which states that the House approval of HB 5636 will boost the Philippines’
credit rating due to the fact that it provides the government a fresh revenue stream and it put its
reforms in to order. The narrative was also attested by the Fitch Ratings, Deutsche Bank. and
Nomura.

The article ended by mentioning that there are proposed mitigating measures discussed by
the Development Budget Coordination Committee (DBCC) during a meeting. This meeting was
presided by Benjamin Diokno, budget secretary, tackling the government’s medium-term
macroeconomic assumptions for the year of 2017-2022. In my opinion, the article concluded
abruptly because in a technical aspect, it ended without further resolution of the discourse.
Although, the body of the article was filled with sources and evidences, it did not suffice any final
statements on the matter.

Nevertheless, I am really hopeful for the outcomes of this occurrence. I aspire that every
infrastructure, houses, education, health, and social protection are directly provided for each of the
Filipinos. Besides, I have faith with the government’s plans regarding the approval of the tax
reform package connected with the progression of the Philippines’ economic condition. I believe
that instead of complaining for something that is not yet happening, the mindset of the Filipinos
should adapt this matter into an opportunity. A possibility wherein all of the Filipinos learn from
their mistakes and make a productive difference.

Department of Finance. (July 9, 2018). Tax reform: a win-win for filipinos. Retrieved from:
https://www.dof.gov.ph/taxreform/index.php/2017/06/09/tax-reform-package-a-win-win-for-
filipinos/