NEDA chief Chua: Tax reform should continue post-COVID-19

Acting Socioeconomic Planning Secretary Karl Kendrick Chua on Wednesday reiterated the need for more tax reform bills once the coronavirus disease 2019 (COVID-19) is resolved.

According to Chua, the National Economic and Development Authority (NEDA) will take into account proposals to defer the passage of new tax bills, but he said he personally wants the comprehensive tax reform program to push through.

"Ang tax system natin, kailangan talagang baguhin kasi maraming talagang problema -- napakakumplikado, hindi patas, at napaka-inefficient, so 'pag natapos na ang COVID-19 crisis natin, pag-aaralan 'yan ng DOF at 'yung NEDA naman nag-i-input din kasi dapat alamin natin ‘yung economic impact ng bawat policy," he said during the Laging Handa briefing.

"Pero ako ay naniniwala na ituloy dapat ang comprehensive tax reform pero siguro ay may konting dagdag or pagbabago para matulungan 'yung mga naapektuhan ng COVID," added Chua.

He was responding to remarks of the Philippine Chamber of Commerce and Industry (PCCI) to defer the passage of proposed tax reform measures post-COVID to attract more foreign investors to the country.

Chua officially stepped in as the chief of the National Economic and Development Authority (NEDA) on Tuesday, April 21. Prior to this, he served as Finance Undersecretary and pushed for the administration's planned tax reform program.

"Alam niyo po, kung hindi tayo magpapasa ng mga tax reform, ang ibig sabihin niyan sa dami ng kailangan tulungan, sa dami ng kailangan na serbisyong ibigay ay uutang tayo," he said.

"Pero ang utang kasi, hindi 'to libre na galing sa langit. Ang ibig sabihin ng utang hindi natin babayaran ngayon sa pamamagitan ng buwis. Ang ibig sabihin niyan, 'yung anak at apo ang pinapabayad natin ng inutangan natin," added Chua.

The Tax Reform for Acceleration and Inclusion (TRAIN), the first package of the tax reform program, was signed into law by President Rodrigo Duterte in 2017.

Still pending before Congress is the second package -- Comprehensive Income Tax and Incentives Rationalization Act (CITIRA) -- which seeks to reduce corporate income taxes while rational the fiscal incentives. It has been certified as urgent by Duterte.

Another component is Package 2+ to increase the government’s share from mining operations, which Congress has yet to pass.

Also pending are Package 3 to reform the property valuation system, and Package 4 to rationalize capital income tax.—AOL, GMA News