Economists, technocrats signal support in principle for TRAIN 2

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congress TRAIN 2 "title =" congress TRAIN 2 "/> </div> </p></div> <p> ECONOMISTS signed a joint statement of support for the tax reform program of the Ministry of Finance (DoF) reforming the corporate tax system and the regime of "While the Congress deliberates on the second reform package, we express our support for the fundamental principle of a corporate tax system that is broad and competitive with respect to our peers in the region. However, for the sake of fiscal prudence, lowering rates should go hand in hand with the rationalization of tax incentives, "the economists said in their joint statement of support. </p> <p> ] The second tax reform package, filed as the House bill No. 7458, and known as TRAIN 2, after the name of the tax reform law (tax reform for the acceleration and inclusion) is currently considered The measure is aimed primarily at gradually lowering the corporate income tax rate (IRS) up to 20% from the current 30% to be competitive with the Equivalent economies in South-East Asia, while streamlining It hopes to streamline and remove some redundant incentives granted by 123 laws through 14 investment promotion agencies, while retaining those consistent with the Strategic Plan for Africa. medium-term strategic investment of the government, and However, the government will replace the current tax incentive of 5% of gross income, turning it into a 15% tax on net income, but removing the "a u place of all national and local taxes. "Provision of the Tax Code The proposal also aims to cap the incentives to five years, prohibit the use of value added tax as an incentive to invest; establish the Board of Review of tax incentives to administer tax benefits; In addition, the DoF draft version aims to increase revenue equivalent to 0.15% of gross domestic product (GDP) before reducing by one percentage point the 39, IRS. [19659003] "We agree with the Ministry of Finance and the Ministry of Trade and Industry that tax incentives should be performance-based, time-bound, targeted and transparent. Economists </p> <p>we call on Congress to take urgent measures to ensure its timely adoption, "they added. </p> <p> The DoF hopes to have the second package of tax reforms this year, to time for its implementation in 2019. </p> <p> the incentives that are given permanently discourage companies from becoming self-sufficient and stifle our ability to align incentives with strategic priorities as they evolve in the future. time, "economists said. promotion of employment. For our country to be truly attractive to long-term investors, the government needs to improve public infrastructure, human development and the ease of doing business as long-term solutions to development and competitiveness, "he said. added statement was signed by former Deputy Secretary of Finance, Romeo L. Bernardo; Professor Dante B. Canlas of the School of Economics of the University of the Philippines (UP ) and President and CEO of the Philippine National Oil Co. Alternative Fuels Corp.; Gerardo P. Sicat, Emeritus Professor at the UP School of Economics and former General Manager of the National Authority of the 39, Economics and Development; Gilberto M. Llanto, Board Member and Past President of the Philippine Institute of Development Studies; Renato E. Reside, Assistant Professor of Economics and Development; UP School of Economics; Monetary Council, Felipe N. Medalla and Bruce J. Tolentino; and Arsenio M. Balisacan, President of the Philippine Competition Commission. – <b> Elijah Joseph C. Tubayan </b></p> <footer> </footer></div> </pre> </pre> [ad_2] <br /><a href=Source link

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