During the ceremonial signing event in Malacañang Wednesday night, Duterte asked Congress to prioritize some of the important bills he said so that his administration can pursue them.
“I hope that when both houses of Congress resume sessions this year, priority will be given to the remaining flagship programs of my administration. And this will include the Comprehensive Tax Reform Program, the Retail Trade Liberalization Act, the Foreign Investments Act, and the Public Service Act,” he said.
Several tax reform packages are under the Comprehensive Tax Reform Program, which aims to change some government taxation systems.
The Retail Trade Liberalization Act, Foreign Investments Act, and Public Service Act target to implement measures to attract investors to the Philippines and create more jobs to boost the country’s economy.
“Now, more than ever, we need to follow the whole-of-nation approach in ensuring an inclusive and seamless response to the current challenges facing the nation,” said Duterte.
“With the help of Congress, I am confident that we can pursue our legislative agenda and create an environment conducive for our people’s growth and our nation’s progress,” he added.
Duterte asked Congress to prioritize proposals for tax reform
The Tax Reform for Acceleration and Inclusion Law (TRAIN Law), officially designated as Republic Act No. 10963, is the initial package of the Comprehensive Tax Reform Program (CTRP) signed into law by President Rodrigo Duterte on December 19, 2017.
The TRAIN Act is the first of four packages of tax reforms to the National Internal Revenue Code of 1997, or the Tax Code, as amended. This package introduced changes in personal income tax (PIT), estate tax, donor’s tax, value-added tax (VAT), documentary stamp tax (DST), and the excise tax of tobacco products, petroleum products, mineral products, automobiles, sweetened beverages, and cosmetic procedures.
The prominent features of the tax reform are lower personal income tax and higher consumption tax. Individual taxpayers with taxable income not exceeding ₱250,000 annually are exempted from income tax. The exemption for minimum wage earners is retained in the revised tax system. Tax rates for individual taxpayers still follow the progressive tax system with a maximum rate of 35%, minimum rates of 20% (taxable years 2018 to 2022), and 15% (2023 onwards).