P90 billion to be generated from new tax law, officials say
The Philippine government is expected to raise some P90 billion from the newly-passed tax reform measure, including P8 billion from the provisions vetoed by President Rodrigo Duterte, the Development Budget Coordination Committee ( DBCC) said on Friday.
DBCC, chaired by Department of Budget and Management Secretary Benjamin Diokno, held its 171st meeting at the Department of Finance in Pasay City and revised some of its macro-economic targets for the medium-term.
But the economic managers, during the press conference after the DBCC meeting, did not release the provisions of the Tax Reform for Acceleration and Inclusion Duterte vetoed.
"We just had discussion with the members of the Office of the Executive Secretary and they said that they cannot release it until they have the signed copies. Apparently there's some hitch. They were signed by the president but fortunately he went to Davao. They're looking for the document. But we have been assured that the veto messages have been signed," said Finance Secretary Carlos Dominguez III.
Aside from TRAIN, which was signed on Dec. 19, Duterte also inked the P3.767-trillion budget for 2018 and some of its provisions were also vetoed.
According to DBM, the first package of TRAIN is projected to contribute a net amount of P82.3 billion in fiscal year 2018.
"This could go higher given the vetoed provision on the TRAIN law," it said.
According to Dominguez, with the vetoed items of the TRAIN, "we estimate the revenues will go up to close to P90 billion."
He said the P90 billion would only be for the Part A of first TRAIN package, which includes among others the exemption of P250,000 from the annual income tax of workers.
TRAIN Package 1-B, which basically provides for general and estate tax amnesties, is still pending in Congress, he said.
Domiguez said they hope that this could be passed into law soon as the executive will submit the Package 2, covering the corporate tax, of the Comprehensive Tax Reform Program by January 15 next year.
"Part B will raise about P38 or P40 billion and we expect that to be passed in the first quarter of the year," he said.
During the DBCC meeting, some economic targets that were adjusted were exports, from 7 percent to 9 percent next year and to be maintained to 9 percent until 2022; and price of Dubai crude oil per barrel from $50 to $65 in 2018 until 2022.
Gross domestic product growth rate was kept at 7 percent to 8 percent next year until 2022.
For financing mix, Diokno said that for 2018, there will be slight adjustment as the government is projected to borrow 74 percent from domestic sources, while 26 percent will be from foreign sources.
For 2019 to 2022, the government’s borrowing program is projected to follow an 80-20 mix in favor of domestic sources.
DBCC also maintained the deficit ceiling to 3 percent of GDP in 2018. Celerina Monte/DMS
