With only several days before the official inauguration of President-elect Rodrigo Duterte, everybody can expect one thing for sure – change is indeed coming.
The Philippine tax system, for instance, will be drastically tweaked as he promised during the presidential campaign period. In fact, plans are underway and his chosen Finance chief Carlos “Sonny” Dominguez is currently preparing to get things done.
In his first public interview with ABS-CBN News, the incoming chief said:
“We are definitely looking at reviewing all the tax brackets that have been in place for almost twenty years. These tax brackets have been eaten up by inflation and have become quite inequitable.”
In an Asian Dragon interview, then-candidate Rodrigo Duterte said that he favors the idea of scrapping taxes for individuals earning Php 24,000 and below monthly.
“If you’re earning P24,000 and below, no more income tax— the rest will be a gross tax on everything. Show your expenses, and there is a tax schedule. It’s been done in Singapore and Malaysia.”
Dominguez, meanwhile, assured those speculating that the government will raise VAT (value-added tax) in order to offset the expected losses. He said:
“The VAT is a very regressive tax because it hits the poor, the lower-income people, harder than the higher-income people.”
Duterte has always expressed his intentions of simplifying laws and regulations to entice more investors in the country.
“For example, in a department or authorizing body, I would limit the period where they can sit down on an application. If you do not have the workers, tell me; I will ease restrictions. I will make it easy for business to go direct to Customs. If you are not satisfied, you are welcome any time to tell me your problems,” said Duterte.
Another huge focus of the incoming administration would be to get rid of corrupt officials.
“Assure business people of no extortion from anybody, whether police, BIR or Customs. Allow them to do business, and they will be happy,” said Duterte.
watch the video courtesy of AbsCbn