THE Department of Finance (DoF) hopes that several tax reform measures will be approved by Congress this year despite the upcoming midterm elections.
“Lawmakers have the opportunity to hold public hearings during the recess. We can do the work and then hold just one committee meeting during the resumption to approve the committee report,” DoF Revenue Operations Group Director Euvimil Nina R. Asuncion told reporters on the sidelines of an event on January 8.
“We will continue to work with House and Senate leadership to pass the measures.”
The 19e Congress will resume session on January 14 but will adjourn on February 8 as lawmakers prepare for the start of the campaign period. The campaign period for national elective posts starts on February 11, while the campaign for local posts starts on March 28. The elections are scheduled for May 12.
Lawmakers resume session on June 2 and adjourn sine die on June 13, formally concluding the 19th session.e Congress.
Ms. Asuncion said the DoF is pushing for the passage of the excise tax on single-use plastics (SUPs), the proposed bill on Optimization of Government Revenue through Wealth Tax Harmonization (GROWTH) and reforms to the tax regime for the mining industry.
“Instead of implementing the CMEPA (Capital Markets Efficiency Promotion Act), we want the GROWTH Act [passed] instead, because it covers both capital markets and financial intermediaries. Actually, all the items that are in CMEPA are also in the GROWTH bill. The GROWTH bill is essentially the new Passive Income and Financial Intermediary Taxation Act (PIFITA),” she added.
Ms. Asuncion also said the DoF hopes that Congress will pass the bill that would impose a tax on single-use plastics.
“We also insist on that. Not just for revenue, but we really need to start looking at our climate change commitments… We really see it as a cause of plastic pollution, especially in our cities. We really need to push for a revenue measure that will really discourage use,” she said.
The House of Representatives approved its version of the bill in November 2022, while a similar measure is pending before a Senate committee.
Ms. Asuncion said these measures should have been approved last year and could be debated at the 20th meeting.e Congress, which starts on July 28.
‘That’s another new conference. We will have to re-explain the measures and convince different people depending on who wins in the elections,” said Ms. Asuncion of DoF.
Albay Rep. Jose Maria Clemente “Joey” S. Salceda, chairman of the House Ways and Means Committee, said in a Viber message that tax reforms would not be delayed by the elections.
“I’m not really worried about the elections. We were able to implement important reforms last time during the Lame Duck session,” he said.
He noted that the CMEPA bill is “well underway,” while the proposed mining budget reform bill has a “high chance” of being passed before the 19th.e The congress ends.
“My preference is for the road user charge for motor vehicles before the 19the The congress ends. The rates have not been updated since 2004 and could generate substantial revenues, up to €52 billion, for public transport, road projects and other transport improvements,” Mr Salceda said.
TAX AMNESTY
Meanwhile, Ms. Asuncion of DoF said the ministry wants to implement a general tax amnesty measure.
“So right now the inheritance tax amnesty is still in effect. Delinquencies have decreased. But this is what we will be looking at if we were to get a blanket tax amnesty,” she said.
“Hopefully we can introduce it this year. Whether this Congress or the next, that is the question,” she added.
In 2019, then-President Rodrigo R. Duterte signed Republic Act 11213 or the Tax Amnesty Act, but vetoed the provision for a blanket tax amnesty due to loopholes in the law. Mr. Duterte only retained the inheritance tax amnesty provisions.
“Tax amnesty is only a one-time measure, but it could lead to tax cuts in the long run, as taxpayers would think that they can always use amnesty in the future,” coordinator Filomeno S. Sta. said Ana III in a Viber message. — AMCS