Money

House eyes P70B new revenues from POGOs, road tax, mining, plastic

The House Ways and Means Committee hopes to enact four key tax measures in 2020 to raise nearly P70 billion in new revenues annually.

The House Ways and Means Committee hopes to enact four key tax measures in 2020 to raise nearly P70 billion in new revenues annually.

Albay Rep. Joey Salceda said he would push for the passage in plenary
of key tax measures that hurdled committee level in 2019:

1) The tax regime for Philippine Offshore Gaming Operators (POGOs), with an estimated P20 billion to P45 billion tax take

2) Motor Vehicle Road Users’ Tax with P16 billion in revenues

3) Mining fiscal regime worth P2 billion of taxes

4) Tax on single-use plastics for P4 billion expected revenue

Salceda said the panel would also improve tax administration by studying structural reforms in the Bureau of Internal Revenue and the Bureau of Customs.

“We will likewise try to raise taxpayer morale by studying digital transformation of the revenue collection agencies. We want to make taxpayer experience seamless. The aim, ultimately, is to encourage tax compliance and deter tax avoidance,” Salceda said.

“With a few tweaks in taxpayer experience, even if we improve compliance by just 1 percent of total BIR collections, that is already a revenue increase of about P22 billion. We can, of course, do much more,” he added.

Salceda said the top priority next year is to pass the Corporate Income Tax and Incentive Rationalization Act (CITIRA) which he described as the “single most important economic reform after EDSA.”

“I expect the Senate to pass CITIRA within the first two months of the new year. 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 (FIRB),” he said.

“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,” he added.

The committee chairman said he is also expecting the Passive Income and Financial Intermediaries Tax (PIFITA) and the Real Property Valuation and Assessment Reform Act (RPVRA) to pass in 2020.

“PIFITA will unlock the potential of our capital markets and encourage ordinary Filipinos to invest for their future. RPVRA will help complete Build, Build, Build by expediting right of way acquisition. Both are definitely crucial for growth,” he said. (PNA)

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