Tax reform keeps PHL peso buoyant

The Philippine peso continued to track a winning streak for the third straight session on Thursday as optimism over the passage into law of the Tax Reform for Acceleration and Inclusion bill continued to boost the local currency.

The peso strengthened by 5 centavos at P50.240:$1 from 50.29 on Wednesday.

“This is still the off-shoot of the optimism brought by the tax reform passage,” Union Bank of the Philippines chief economist Ruben Carlo Asuncion said.

TRAIN or Republic Act No. 10963 was signed into law by President Rodrigo Duterte on Tuesday.

The tax reform package exempts workers earning P250,000 and below from paying personal income tax, and adjusts the excise taxes on fuel and automobiles.

“The Philippine peso was flat with an upward bias against the dollar, as the Philippines’ progress on tax reform continues to drive the currency up, in contrast to controversies in US tax reform and the greenback,” BPI Asset Management said in a market commentary.

The US Congress passed a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary relief to middle-class Americans, a report by Reuters said. — VDS, GMA News