Duterte wants Congress to ‘immediately pass’ TRABAHO bill, other tax measures

President Rodrigo Duterte on Monday called on Congress to “immediately pass” the second package of his administration’s comprehensive tax reform program.

“We have also tax reforms to fund our poverty reduction programs. I therefore implore Congress to immediately pass Package 2 of the comprehensive tax reform program or the TRABAHO Bill,” Duterte said during his State of the Nation Address (SONA).

The Tax Reform for Attracting Better and High-Quality Opportunities (TRABAHO) Bill aims to make tax incentives time-bound, transparent, targeted, and performance-based for a more competitive fiscal system.

Under the proposal of the Department of Finance (DOF), some 123 laws will be repealed and consolidated into one omnibus incentive code.

The measure also seeks to reduce corporate income tax (CIT) rates to 20% from 30%.

“It will energize our MSMEs and encourage them to expand their business and hopefully generate … 104 million jobs in the coming years,” said Duterte. “The MSMEs hold the promise of raising a lot of the Filipinos.”

Business groups, however, believe that investments and 1.5 million jobs may be lost should the government push through rationalizing incentives as businesses may move to other markets.

“I am also asking Congress to pass the remaining packages of my administration’s tax reform program and the bills that could further raise excise tax on ... tobacco and alcohol,” Duterte said on Monday.

Other pending tax reform packages are Package 2 Plus which seeks to increase the government’s share from mining operations. Package 3 reforms the property valuation system, and Package 4 rationalizes the capital income tax.

Finance Secretary Carlos Dominguez III earlier said he wants all pending packages to be passed into law this year. —VDS, GMA News