TMAP to lawmakers: Take cue from Duterte’s stand on taxes

MANILA, Philippines - Legislators were told to take their cue from presumptive president Rodrigo Duterte who included tax reform on his eight-point economic agenda.

“We call on the members of the Senate and the House of Representatives to consider the views of our incoming president... in determining the tax legislative agenda of the next Congress,” said the Tax Management Association of the Philippines (TMAP).

“TMAP will support the new administration in pushing for a comprehensive tax reform program,” the industry group said in a statement.

By law, tax amendments should emanate from the Lower House.

Marikina Rep. Miro Quimbo earlier said he would file a tax reform bill as soon as the new Congress opens after President Aquino opposed to lower income tax rates last year.

Last Thursday, Duterte’s transition team bared the front-runner’s economic plans for the first time on his presidential candidacy. Duterte leads the Malacañang race by over five million votes.

The priorities included making income tax more “progressive,” meaning ensuring those that earn more pay more. Taxes may also be indexed to inflation to protect revenues.

TMAP president Benedict Tugonon said this reflects Duterte’s answers to the organization’s tax survey last month.

In the poll, the former Davao City mayor also said no to automatic price inflation-adjusted income tax, increases in value-added tax (VAT), oil excise tax and to more VAT-covered transactions.

On the flip side, Duterte supported an increase in excise levies for luxury products and motor vehicles, easing of bank secrecy law for tax purposes and income tax bracket revisions.

“As it stands now, there appears to be a need to balance his tax cut proposals with revenue-generating proposals. I think this will be considered once discussions begin,” Tugonon said by phone.

Sought for comment, economist Romeo Bernardo of think tank GlobalSourcePartners agreed.

“The one thing I would have wanted to hear more about is tax reform. But that is a complex subject and time (is) enough for that in months ahead,” he said in an e-mail.

“Perhaps the best course is to compose a high-level experts group...to do a comprehensive study and make recommendations on tax reform,” Bernardo added.