Despite drawback, DOF confident Congress will approve tax reform

Despite having been returned to a technical working group (TWG) by the House of Representatives Ways and Means Committee for "fine-tuning," the proposed tax reform package will be approved by lawmakers, an official of the Department of Finance (DOF) said.

"Meron lang pong mga bagay doon na gusto po nilang ayusin, for example ... let's say, 'yung sa rate ng mga auto gusto nila ibaba natin ng konti. 'Yun 'yung pinag-uusapan ... May mga fine-tuning lang po na ginagawa pero hindi sila against," Finance Assistant Secretary Paola Alvarez said during GMA News' "Ask Away" interview on Wednesday, hosted by Mav Gonzales.

"So, we are confident na ipa-pass po nila, kasi naiintindihan naman po nila na we need 'yung infrastructure at economic growth na 'yan na ating ini-aim," Alvarez noted.

"We are very confident na ipapasa po 'yun, kasi po talagang pet bill po 'yan ni President. At saka naiintindihan naman po ng mga mambabatas kung ano 'yung 10-point economic agenda ... Ngayon , hindi naman po sila tutol e," Alvarez added.

On Tuesday, the ways and means committee approved a motion to create a TWG to further discuss House Bill 4774 or the Comprehensive Tax Reform Package, which contains the first package of tax reforms. The bill seeks to lower the personal income tax, while increasing the excise tax rates on petroleum products and automobiles and expanding the value-added tax base as compensating measures.

"Last hearing na kahapon kasi magre-recess na sila, pero ang sinabi sa atin ni Congressman Cua, he will work even while on recess, 'We will do the technical work even on recess, and we will have the committee report even on recess,' para when they come back sa session ... ma-vote na 'yan para mapadala na 'yan sa plenary," Alvarez noted.

Quirino Rep. Dakila Carlo Cua chairs the House Ways and Means Committee. He is also the main author of HB 4774.

"At the same time, sa Senate, nagsisimula na rin po tayo kila Sen. Angara, kasi siya 'yung head ng ways and means nila," Alvarez said.

In a separate statement, Finance Secretary Carlos Dominguez III welcomed the move by the House Ways and Means Committee to “approve in principle” the first phase of the tax reform package.

Dominguez said the decision of the committee to pass tax reforms as a package rather than on a piecemeal basis is a step closer for the Congress to help the Duterte administration fund its ambitious agenda to sustain the high-growth momentum, dramatically cut poverty and transform the country into a high middle-income economy by 2022.

Approving the bill in principle means that the measure would be tackled as a package, rather than per individual tax proposal which ensures that the CTRP would be discussed by the TWG in its entirety. —VDS/KG, GMA News