By ANGELA CELIS
The government expects to generate P187.1 billion from the implementation of the comprehensive tax reform program (CTRP) next year, the Department of Finance (DOF) said.
This includes P153.8 billion from the Tax Reform for Acceleration and Inclusion Law, P15.5 billion from the recently enacted RA 11346 that raised excise taxes on tobacco products, and P17.8 billion from the CTRP Package 2 Plus increasing excise taxes on alcohol and e-cigarette products, Gil Beltran, DOF undersecretary, said during the Development Budget Coordination Committee’s Senate briefing yesterday.
Package 2 Plus was approved by the House of Representatives on third and final reading on August 20.
Also pending are Package 2 and 4 which seek to make tax incentives and corporate income, passive income, and financial intermediary taxes simpler, fairer, more efficient and regionally competitive. These measures are revenue neutral.
“The executive branch will continue to be engaged with the legislature in passing the remaining tax reform packages that will generate additional revenue streams for government to fund social amelioration programs,” Beltran said.
Beltran likewise pointed out the passage and implementation of the remaining tax packages and the rest of the fiscal reform agenda will help bring the country to “A” rating territory “within the next couple of years.”
“As Standard & Poor’s mentioned in their assessment of the Philippines, the ambitious tax reform agenda was a key factor in their credit rating upgrade from BBB to BBB plus. This is one notch away from the sterling A rating territory. This higher investment grade rating means upgrading everyone’s life,” Beltran said.
For 2020, he said revenue collections are projected to reach P3.5 trillion while expenditures are expected to reach P4.2 trillion, which translates into a deficit ceiling of P677.6 billion or 3.2 percent of gross domestic product.