House passes second part of tax reform bill
The House of Representatives, voting 187 for and 14 against with three absentions, on Monday approved on third and final reading the “Tax Reform for Attracting Better and High-Quality Opportunities” (TRABAHO) bill, formerly the Tax Reform for Acceleration and Inclusion (TRAIN) II.
The bill seeks to encourage investments by lowering corporate income tax rate from 30
percent to 20 percent and modernize investment tax incentives to enhance fairness, improve competitiveness, plug tax leakages and attain fiscal sustainability.
Its principal author is House committee on ways and means chairman and Quirino Rep. Dax Cua.
Cua and co-author, Nueva Ecija Rep. Estrellita Suansing, sponsored the bill.
The bill seeks to reduce the current 30 percent corporate income tax rate per two years to 28 percent in 2021 to 20 percent in 2029.
It also proposes to grant fiscal incentives to registered activities of exporters and industries listed in the Strategic Investments Priority Plan.
It provides subsidies through school and housing vouchers, as well as allocate funding for universal health care from incremental revenue. It has a structural adjustment fund for displaced workers.
Cua said the TRABAHO bill will impose additional tax on consumer goods.
Cua said lowering the corporate income tax will provide relief to small and medium enterprises which represent about 95 percent of all corporate taxpayers. DMS