Tax reform packages 3 and 4 ready for submission to Congress

Finance Secretary Carlos G. Dominguez III INQUIRER File Photo

The Department of Finance will submit for Congress’ consideration two more tax reform packages when it resumes session this month in line with plans to have the comprehensive tax program in place by the end of this year.

Finance Secretary Carlos G. Dominguez III told reporters last week that tax packages three and four would be submitted to Congress before the end of July.

Director Euvimil Nina R. Asuncion of the DOF’s strategy, economics and results group said the third tax package would put in place a single valuation for real property, while the fourth package would be on financial taxes.

“The goal is to simplify financial taxes,” Dominguez said.

He said the country had 80 different types of taxes on financial products and instruments and package four of the tax reform program aimed to bring this down to 42.

As for the third package, Dominguez said: “We just want to make sure that the appraisal is done in an internationally accepted way and is done regularly.”

“[With] the higher tax on real estate you will remove the speculative aspect of it, because it’s going to cost you too much to hold undeveloped idle real estate. This will force them to develop the property,” he added.

Dominguez said they wanted the second tax reform package on corporate income taxation passed by the fourth quarter.

Besides the first package or the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which was signed by the President last December, up to five more packages will be pursued by the Duterte administration, including a general tax amnesty.