Finance chief open to adjustment of tax rates, brackets

MANILA, Philippines - The Department of Finance maintained that it wants a holistic review of the country's existing tax structure.

But amid mounting calls for an income tax cut, Finance Secretary Cesar Purisima expressed openness to proposals seeking to alter prevailing tax rates.

"We are open to a holistic reform which will include an adjustment of the rates and brackets," Purisima said in a statement relayed by Presidential Spokesperson Edwin Lacierda to reporters.

"Doing otherwise is not the fiscally responsible way since it can hurt our people [in the] long run if we go down the slippery slope of populist policies," Purisima added.

Last week, President Aquino rejected proposals to lower income tax rates, fearing that doing so would reduce government revenues and affect the country's credit ratings.

Earlier this month, Purisima said the administration cannot put the country's fiscal sustainability and credit rating at risk by doing "piecemeal revenue-reducing legislation," referring to the bills filed in Congress on income tax cuts.

Purisima urged Congress to approach fiscal reform from a "holistic standpoint with the goal of making the structure more buoyant, equitable, progressive and competitive."

He said this would allow the government to continue increasing investments in the people and infrastructure, which is crucial to national competitiveness and ability to attract investments and job opportunities. - Louis Bacani