MANILA - The second package of the Duterte administration's comprehensive tax reform program aims to give a superior set of incentives to push investments in the country, a finance official said Wednesday.
Assistant Finance Secretary Tony Lambino told ANC's Headstart that House Bill No. 8083 or the Tax Reform for Attracting Better and High Quality Opportunities (TRABAHO) Bill is "pro-incentives for the right reasons."
"We want to give in fact a superior set of incentives, a really good menu for those who want to create jobs in the country, for those who want to bring research and technology that wouldn't have been brought in otherwise, those who want to invest in areas in the country not as economically-developed as the major urban cities," Lambino said.
Lambino said the industries are to be determined by the Board of Investments through their proposed Strategic Investment Priorities Plan (SIPP).
"The BOI would be in the best place to determine what those are with review every few years," he said.
But Lambino said they want the incentives to be time-bound and not given for all time.
"We want to modernize our incentive system, we need to sunset those who have been receiving incentives for a very long time already," he said.
He added: "But at the same time, for the benefit of a vast majority of businesses, lower the corporate income tax rate from say 30 to 20 percent."
Incentives should be performance-based and targeted not just in any industry but through the SIPP.
The House of Representatives passed the TRABAHO Bill on third and final reading last year.
The TRABAHO Bill seeks to encourage investments by bringing down the corporate income tax rate from 30 percent to 20 percent and rationalize investment tax incentives to enhance fairness, improve competitiveness, plug tax leakages and attain fiscal sustainability.