MANILA — Finance Secretary Carlos Dominguez III on Tuesday said that government remains committed to its deficit ceiling of three percent of gross domestic product (GDP), even as gains under the proposed tax reform program were seen to bring in revenues and attract more investors.
The House of Representatives has approved its version of the bill – the Tax Reform for Acceleration and Inclusion (TRAIN) bill – while the Senate has set it for plenary deliberation in November.
The first package of the DOF-proposed tax reform is targeted to bring in additional PHP157 billion revenues in its first year of implementation.
The House-approved bill is seen to bring in additional PHP134 billion revenues and Dominguez said Finance officials “are happy” with it.
The Finance chief is hopeful that the Senate version will also yield a positive result since its gains will benefit the poor and the economy as a whole.
After the Senate approves its own version, both measures will be discussed in the Bicameral Conference Committee.
“Hopefully the bicam will yield revenues that will allow the country to achieve what it really wants and that is embodied in the AmBisyon 2040,” he said, referring to the government’s economic development plan over the next 25 years.
Gains from the tax reform are targeted to be used to boost the country’s infrastructure, which Dominguez said would have long-term economic impact.
With infrastructure investment increasing, he said more foreign investors would be encouraged to put their funds in the domestic economy.
“Well I think it’s going to help there, it’s certainly going to help encourage foreigners to make investments here,” he added. (PNA)