“Lower income taxes” is a phrase will make a lot of people smile.
On Mon, Jun 20, the first day of “Sulong Pilipinas: Hakbang Tungo sa Kaunlaran” consultative workshop in Davao City, incoming Department of Finance (DOF) Secretary Carlos “Sonny” Dominguez told business leaders that administration of President-elect Rodrigo Duterte plans to reduce individual and corporate tax rates.
Dominguez was quoted as saying, “The new administration will definitely review the tax system, initially to update the income tax brackets and eventually to lowering corporate and individual tax rates. We wish to see our workers having more disposable income to do as they wish.”
“Dominguez went on to say that along with the plan to reduce individual and corporate tax rates, the new administration also plans to cut down on foregone revenues by tightening on the perks given away to investors as well as value-added tax (VAT) exemptions,” reports Ben O. de Vera in Philippine Daily Inquirer.
Dominguez explained that “the incoming economic leaders were looking at cutting on a long list of VAT-exemptions to compensate for expected revenue leaks from lower taxes and rates.”
However, Dominguez made it clear that VAT exemptions covering senior citizens as well as persons with disabilities may be kept.
