THE country’s leading economists, including former Finance secretaries and National Economic and Development Authority heads, are pushing for Congress to approve the Tax Reform for Acceleration and Inclusion or TRAIN bill, authored by Albay Rep. Joey Sarte Salceda.
The fiscal reform package contained in House Bill 4688, Salceda said, aims to “create a tax system that is simpler, fairer and more efficient, characterized by low rates and a broad base promoting investment, job creation and poverty reduction.”
It is now a “first priority” measure of the House Ways and Means committee when Congress resumes its regular session next week, the lawmaker said.
Salceda said the country’s current tax rates are based on the 20-year-old National Internal Revenue Code, which has not been substantially modified since 1997.
TRAIN aims to ultimately reduce poverty to single digit, grow the economy by 9 percent, and transform the Philippines into an Asian economic powerhouse by 2028, with $1.2-trillion Gross Domestic Product, he said. “It will then qualify the country for membership in the Organization for Economic Cooperation and Development [OECD].”
The Foundation for Economic Freedom, made up of ex-officials from the Department of Finance and five former heads of Neda, recently endorsed the reform proposals. It said the bill will “put more money in people’s pockets, encourage investment, ultimately leading to the eradication of extreme poverty.”
An advocacy group for good economic governance and market-friendly reforms, FEF also commended the DoF and Duterte’s economic team for “crafting a forward-looking fiscal program for legislation.”
It said the proposed legislative program “creates a solid foundation for inclusive growth, improved public services and improved purchasing power among consumers.”
FEF members jointly signed the statement, including former Finance secretaries Cesar Virata, Jose Isidro Camacho, Jesus Estanislao, Roberto de Ocampo, Jose Pardo, Cesar Purisima, and Juanita Amatong; former Neda directors-general Arsenio Balisacan, Emmanuel Esguerra, Cielito Habito, Felipe Medalla, and Romulo Neri; and ex-Finance Undersecretaries Joel Bañares, Romeo Bernardo, Cornelio Gison, Lily Gruba, Milwida Guevara, Jose Emmanuel Reverente, and G. Florencia Tarriela.
“The structural weaknesses of the outdated tax system makes our economy less competitive relative to our neighbors, and deprives our people of deeply needed investments to improve their lives,” the FEF statement said. “We believe this program will translate to a more comfortable life for all Filipinos along with safe, healthy, and peaceful communities all over the country.”