Dominguez assures Duterte pushing tax reform legislation

MANILA, Philippines – Despite lack of development on the tax reform bill, President Duterte continues to push his allies in Congress on the importance of the landmark measure, Finance Secretary Carlos Dominguez said.

“We had at least three meetings with the legislature and he said it to them (legislature),” Dominguez told reporters in a recent interview.

“He is fully engaged in it,” Dominguez assured.

The first package of the tax reform remains stuck at the House of Representatives after being filed in September last year. Analysts say Duterte may need to step in to give it a push.

Earlier, the Department of Finance decided to divide the flagship reform into five packages in a bid to make it more acceptable to legislators.

The first one includes a cut on personal income taxes, hike in oil excise levies and reduction of value-added tax exemption. It aims to raise an additional P200 billion in revenues.

Dominguez said Duterte would soon convene the Legislative-Executive Development Advisory Council (LEDAC), which groups legislative representatives and Malacañang, to push for priority bills.

Socioeconomic Planning Secretary Ernesto Pernia earlier said the LEDAC meeting is scheduled on Jan. 20.

“(Tax reform is) still on target, we did not expect it to be effective January. In fact, if you look at the original plan it will be either effective July 1 or first part of Jan. 1, 2018,” Dominguez said.

“I wish it would go faster, but this is the way legislation moves,” the finance chief said.

Duterte’s support is deemed crucial to the tax reform’s success as shown by previous administrations where presidents publicly call by Congress to pass the measures they want.

For instance, former president Gloria Macapagal-Arroyo threw her support behind Republic Act 9337 or the Expanded Value-Added Tax Law, while Benigno Aquino III pushed his allies to pass RA 10351 or the “sin” tax reform.

But Dominguez shrugged off the need for Duterte, who has repeatedly tackled his drug war in speeches, to say something about tax reform in public.

“Three times, we had those meetings. One time we even had (former) president Arroyo there. In fact those meetings were mini LEDAC of sorts,” he said.

Earlier, Quirino Rep. Dakila Cua, chair of the House ways and means committee hearing the tax reform, said he would file a “compromise” bill soon since some of the original components were unacceptable to congressmen.

The STAR learned this included a phasing of oil excise levy adjustments to three to five years from a one-time hike. Cua did not provide details.