Large taxpayers back DOF's tax reform program

Large taxpayers in the country support the planned Comprehensive Tax Reform Program (CTRP), JG Summit Holdings Inc. President and CEO Lance Gokongwei said.

"When it comes to tax policy and administration, our desire is but simple: first, a streamlined, not-too-burdensome set of procedures and processes that will make tax compliance straightforward and easy,” Gokongwei was quoted as saying in a statement released by the Department of Finance (DOF) on Monday.

“And second, a tax reform that will be equitable to our wage earners, allow the government to fund vital infrastructure and social services while enabling corporate partners to remain competitive in this global trading order,” the businessman said.

He was speaking before Finance officials, representing the country's largest taxpayers during the kick-off ceremony of the Bureau of Internal Revenue's (BIR) 2017 tax collection drive.

“That is why I’m here, standing before you today, in representation of my fellow large taxpayers in, first, proudly acknowledging the critical role we play in the success of President Duterte’s overall platform of change, as well as (Finance) Secretary (Carlos) Dominguez’s and (BIR) Commissioner (Caesar) Dulay’s tax reform program,” he said.

Large taxpayers are those with a net worth of at least P300 million and pay an annual income tax and withholding tax of at least P1 million. It also includes the top 1,000 corporations in the country.

In June 2016, the Duterte economic team presented the administration's 10-point socioeconomic agenda which includes the implementation of a progressive tax reform to increase revenue and lower the personal income tax.

The first package of proposals – reducing the personal income tax (PIT) and expanding the value-added tax (VAT) base – was submitted to Congress in September.

The administration is also proposing to raise the excise tax on gasoline to P10.00 per liter from the P4.35, and impose a P6.00 per liter tax on diesel – which currently has no excise tax.

However, Bayan Muna party-list Representative Carlos Isagani T. Zarate earlier said higher taxes on oil products would be "counterproductive" and could "wipe out, or, at the very least, drastically reduce the benefits of lower income tax.

“This proposal is anti-people and would definitely have an adverse effect on consumers. Higher taxes for oil would create a domino effect that would spike the prices of basic goods and services like water and electricity," he said in a separate statement. — Jon Viktor Cabuenas/VDS, GMA News