Economic measures reflect on high House trust rating

The historically high 80 percent trust rating for the leadership of the House of Representatives in the latest Pulse Asia survey can be attributed to the passage and creation of various measures aimed at economic reforms.

The Lower House’s work the past six months includes the swift approval of the 2020 General Appropriations Act and various revenue measures such as the Alcohol and Vape tax, Corporate Income Tax and Incentives Rationalization Act (CITIRA), Passive Income and Financial Intermediary Tax Act (PIFITA) and Retail Trade Liberalization Act.

Albay Rep. Joey Salceda, House Ways and Means Committee chair, said the House’s trust ratings “demonstrate that the public appreciates what the House leadership and collective membership, and the focused work of its committees have achieved in a matter of six months. Our hard work did not go unnoticed, they ultimately paid off.”

Salceda also shared the House is working on a number of new initiatives that are supportive of the national agenda—POGO tax regime (P300 billion in 5 years); Motor Vehicle Road Users’ Tax (P122 billion in 5 years); Mining Fiscal Regime (P15 billion in 5 years); Tax on single-use plastics (P 20 billion)—or almost P460 billion resources for widespread prosperity and rapid economic expansion in five years.

“The House Ways and Means Committee pledges to sustain its commitment to funding the President’s key infrastructure and human development priorities,” assured Salceda.

Salceda said the committee also seeks to improve tax administration by studying structural reforms of the Bureau of Internal Revenue and the Bureau of Customs.

“We want to make taxpayer experience seamless taxation. The aim, ultimately, is to encourage tax compliance and deter tax avoidance. With a few tweaks in taxpayer experience, even if we improve compliance by just 1 percent of total BIR collections, that is already about P22-billion revenue increase,” said Salceda.

Salceda said Congress’ most important priority in 2020 will be to pass CITIRA.

“I expect the Senate to pass CITIRA within the first two months of 2020. As the first proponent of a governing body for incentives, for me, one of the most crucial aspects of the reform will be the Fiscal Incentives Review Board. No FIRB makes CITIRA meaningless. It’s the people’s seat at the table. Without reform, we will likely hit P500 billion in tax incentives next year, while still making domestic corporations pay the highest tax rates in ASEAN,” said Salceda.

The Albay lawmaker also said he expects the PIFITA and the Real Property Valuation and Assessment Reform Act (RPVRA) to pass in 2020.

PIFITA will unlock the potential of the capital markets and encourage ordinary Filipinos to invest for their future.

RPVRA will help complete Build, Build, Build by expediting right of way acquisitions. Both are definitely crucial for growth.

“As House Ways and Means Committee chair, we have set three goals to achieve by 2022—an A-level credit rating, 7-9% GDP growth and an upper middle income nation that underpins a safe and comfortable life for all,” said Salceda.