Tax reform II hurdles House committee level

The House Committee on Ways and Means approved on Monday the second package of the government’s comprehensive tax reform program.

The committee passed the proposed tax reform law, dubbed as the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO), during a hearing.

The approved version seeks to gradually lower corporate income tax (CIT) rates to 20 percent from 30 percent, or by 2 percent annually starting 2021.

The bill carried the Department of Finance proposal to rationalize and consolidate fiscal incentives under a single omnibus incentive code.

“Ang goal po dito ay to create jobs by attracting the right set of investments through incentives,” Ways and Means committee Chair Dakila Carlo Chua told reporters on the sidelines of the hearing.

A technical working group (TWG) meeting was held to tackle the bill over the weekend, with newly-installed House Speaker Gloria Macapagal-Arroyo present.

“Of course, she was very determined and material to ensuring that we put this on top priority. In fact, nagtrabaho kami ng Saturday and Sunday,” Cua noted.

Arroyo attended the meeting for several hours during the marathon TWG session on Sunday, Cua noted. “So, you can feel her dedication and sincerity in pursuing this TRABAHO law.”

Arroyo was installed as the Speaker of the House of Representatives on July 23, after Davao del Norte Representative Pantaleon Alvarez was voted out of the position. President Duterte delivered his State of the Nation Address that same day. —VDS, GMA News