MANILA – The National Economic and Development Authority (NEDA) said it is banking on the passage of the second package of tax reforms and the Ease of Doing Business to further spur the country’s economic growth.
In an emailed statement, Socioeconomic Planning Secretary Ernesto Pernia said among the reforms needed to be passed is the second package of the Tax Reform for Acceleration and Inclusion (TRAIN).
“We expect the passage of the second package soon. Among others, it will lower corporate income taxes and rationalize fiscal incentives,” he said.
Under the proposed TRAIN 2, the Department of Finance (DOF) plans to amend or repeal at least 123 special laws on investment incentives, and consolidate them into one omnibus incentive code.
The proposal was submitted by the DOF to Congress in January and has caused apprehension among business groups, especially regarding the rationalization of incentives.
“Overall, the CTRP will also boost the country’s revenue-to-GDP ratio,” said Pernia.
Aside from this, Pernia also noted the passage of the Ease of Doing Business Act which was signed into law by President Rodrigo Duterte in May.
“The Ease of Doing Business Act should make government and business transactions faster, thereby improving the country’s overall business environment to the satisfaction of the citizenry,” he said.
Under Republic Act 11032, the Ease of Doing Business seeks to streamline business processes in the country.
In the same statement, Pernia said a new Foreign Investments Negative List (FINL) is now at the President’s desk for approval.
“Also, we have already completed the draft streamlined 11th Foreign Investment Negative List, which is now with the President for signature,” he said.
Pernia last year said the Philippines would release a “drastically” shorter foreign investment negative list (FINL) in 2017, but no such list has been signed by President Rodrigo Duterte so far.
The FINL is a comprehensive list of activities and sectors where foreign participation is prohibited. Among the sectors, the government wants to lift from the list are retail trade, professions, public utilities, and contractor services. (GMA News)
