While revenues posted a decline in previous months due to the pandemic, Department of Finance (DoF) Secretary Carlos Dominguez III expressed his confidence that the country’s top revenue agencies, the Bureaus of Internal Revenue (BIR) and of Customs (BoC) will surpass their targets.
“If there’s anything that this COVID-19 did, (it) is to inject a large amount of uncertainty but i believe that the new released targets will be (met) by the end of the year,” Dominguez said during the online Senate hearing for the agency’s 2021 budget.
According to him, the revised estimates on tax revenues have already been exceeded and that the P2.2 trillion tax revenue target for the year will be met.
Further, the DoF chief reiterated that the repackaged Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act will benefit the economy despite the eyed foregone revenues from its implementation.
“The proposal to reduce the (corporate) tax is really part of our stimulus program for the economy and really this is trusting the private sector to make the right decisions with that money, trusting them to retain their employees, reinvest in their companies and essentially, it will stimulate the economy,” Dominguez explained.
“Many countries have passed that… We have the highest corporate income tax (CIT) in the ASEAN at 30 percent, the average is actually around 22.5 percent so we would like to approach that and reach up to around 20 percent,” he added.
Savings to become investments
The Cabinet official cited corporate savings from the reduction of the CIT will create more investments for the country, which will generate more taxes in the long term.
Senator Christopher “Bong” Go expressed his full support to the proposed budget of the DoF during the budget hearing. That said, the Senator also sounded a stern warning against corrupt personnel of the DOF’s attached agencies, BoC and BIR, saying that “their days are numbered.”
“I express my full support to the DoF, headed by a very capable financial manager in Secretary Carlos Dominguez,” Go said during his manifestation of support to the department.
The Senator further expressed his confidence on the leadership of DoF and remarked that the country’s financial policies are in very capable hands.
“As the Philippines reels from the devastating effects of the pandemic not just on public health, but also on our economy and financial stability, it is important that the country’s finances are managed properly and efficiently,” Go explained.
“I am positive that we will see this crisis through and emerge stronger than ever,” he added.