MANILA – The House of Representatives on Tuesday approved on second reading the second package of the government’s tax reform program.
Through viva voce or “ayes and nays” voting, the chamber approved House Bill 8083, or the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) bill.
Under the proposed measure, the government will lower the corporate income tax from 30 percent to 25 percent and rationalize fiscal incentives.
House committee on ways and means chair Dakila Carlo Cua, who sponsored the measure in the plenary, earlier said that the passage of the measure will not lead to job loss of many workers or additional tax burden on consumers.
He said that the bill may generate more jobs through the lowering of corporate income tax rate and modernizing the present investment scheme.
Once the new tax investment scheme takes effect, an investor will be able to have a tax holiday of five to seven years.
This, however, depends on the location and merits of the investment.
Aside from this, investments in certain industries, like infrastructure and research development, may also enjoy additional tax cuts.
Speaker Gloria Macapagal Arroyo herself earlier said that the TRABAHO bill is a priority of the House of Representatives under her leadership.
The first package of the tax reform law, which was enacted in December last year, reduced personal income tax rates and at the same time increased excise taxes for petroleum products, automobiles, and imposed levy on sugar sweetened beverages. (GMA News)
