The Senate and the House of Representatives ratified the Bicameral Conference report on Wednesday on a measure that wants to reduce the tax on share transactions to 0.1% of 0.6%, a relocation that experts hope will encourage the Filipino stock market.
At the same time, the congress also ratified the BICAM report on the measure that will increase the capital of the Development Bank of the Philippines (DBP).
“We have devised a piece of legislation that wants to promote the development of the capital market, increase capital mobility and improve the financial inclusion,” said Senator Sherwin T. Gatchalian, referring to the capital markets EFFIciccial promotions act.
“A more efficient capital market means more opportunities, more financial inclusion and a stronger economy that works for everyone.
Mr. Gatchalian said that legislators agreed to reduce the documentary stamp tax (DST) on the original edition of shares of shares up to 0.75% of 1% of the nominal value of the shares.
It will also exempt DST from the original issue, repayment or other decision of shares or participation units to a Unit Investment Trust Fund.
Mr. Gatchalian said that the move would alleviate the financial burden for investors and enable them to maximize their income without unnecessary taxes.
He said that the bill will also introduce a permitted deduction of 50% of an employer’s contribution to the personal share of share and pension accounts of his employees, which would encourage companies to encourage employees to prepare for pension.
A copy of the Bicameral Conference Committee report of the measure was not immediately available.
Based on a prediction by the Filipino stock exchange, the reduction of the share transaction tax to 0.1% would increase the trading volume of the stock market to P4.9 trillion by 2029.
In the meantime, the Senate also ratified the Bicameral Conference Committee report of the new DBP charter, which would increase the authorized capital shares of the lender to P300 billion of P35 billion.
The measure is required that the national government will at all times have 70% of the capital share of the DBP, with a P32 billion or 10.67% completely subscribed to and paid by the State. It will also have the state kept Money lender to perform a first public offer.
“The increased capitalization could be provided to DBP, which would give them an increased opportunity to issue more loans to finance critical projects for priority sectors such as infrastructure health care social services and agriculture,” said Senator Mark A. Villar, who The Senate Act sponsored, on the bill of plenary floor.
A copy of the Bicameral Conference Committee report on the DBP charter was not available.
“This proposed measure will enable the DBP to constantly support national development goals, so that the benefits of these projects reach ordinary Filipinos in terms of opportunities on work, better services and improved resources of existence,” ” Said Mr. Villar. – John Victor D. Ordoñez