The chairman of the House Committee on Ways and Means on Monday expressed confidence that there will be a new Comprehensive Tax Reform Program (CTRP) by June.
PDP-Laban Rep. and Committee Chairman Dakila Carlo Cua of Quirino said members of his committee will tackle the bill until its passage at the panel and plenary levels when session resumes next week.
“Our target is to pass the [technical working group [TWG]-approved] tax package and transmit it to the Senate before Congress goes on another break in June,” Cua said in a radio interview.
Congress will resume its session on May 2. It is also expected to go on another break from June 3 to July 23.
According to Cua, the bill is still under a TWG. The TWG is also headed by Cua.
“The bill was elevated to a technical working group before our break in March. The TWG is the one who will [tackle the proposal], line by line and study the final changes and improvement. It is also expected to come up with a substitute bill,” he said.
“The TWG will submit the substitute bill to the mother committee for approval,” Cua added.
In March the panel—through the motion of Minority Leader and Lakas Rep. Danilo Suarez of Quezon, seconded by Deputy Speaker and Lakas Rep. Gloria Macapagal-Arroyo of Pampanga—has moved to further study the proposal and to hear more the concerns of stakeholders.
Suarez, Arroyo and Deputy Speaker Romero S. Quimbo of Marikina also urged the panel to consolidate the 45 pending bills seeking to lower personal income tax (PIT) rates filed at the lower chamber to the Department of Finance (DOF)-backed CTRP.
The DOF-backed bill adopted by Cua seeks to exempt those earning P250,000 and below from PIT.
However, the tax proposal also includes the imposition of excise tax on fuel as compensatory measure for the foregone revenues due to the lowering of income tax.
The DOF also proposes a staggered increase of P6 per liter of diesel, kerosene, and LPG to be imposed within a three-year period.
The CTRP is also imposing excise tax on vehicles.
The bill also includes the relaxation of the Bank Secrecy Act, taxing Philippine Charity Sweepstakes Office numbers’ game and lotto winnings.
The tax-reform package involves foregone revenue of around P200 billion but, at the same time, will generate around P206.8 billion for the government in the first full year of its implementation.