Department of Finance Secretary Benjamin Diokno welcomed the endorsement by the Legislative-Executive Development Advisory Council of five key fiscal and economic reforms proposed by his agency.
The LEDAC, in a meeting chaired by President Ferdinand Marcos Jr. on July 5, approved 20 measures for Congressional approval by December 2023.
“We extend our appreciation to the President and our legislators for their decisive support. The passage of these measures is crucial in creating an environment conducive to sustainable and inclusive economic growth,” said Finance Secretary Benjamin Diokno.
The DOF said these measures include the Public-Private Partnerships bill, aimed at leveraging private sector resources as a catalyst for capital and economic growth and reforms in real property valuation and assessment to broaden the tax base used for property-related taxes of both national and local governments and to ensure transparent, reliable and market-responsive property valuation.
Also included are the creation of a sustainable pension framework for military and uniformed personnel, the ease of paying taxes bill designed to enhance taxpayer compliance and the automatic income classification of local government units.
The House of Representatives already approved the PPP bill, Ease of Paying Taxes bill, Real Property Valuation and Assessment Reform bill and the LGU Income Classification bill. They are now in advanced stages of legislation in the Senate.
The DOF said it was also actively consulting with military and uniformed personnel to develop a fair and fiscally sustainable pension system.
“We will continue to collaborate with our champions in the Senate and House of Representatives to shepherd the legislative agenda forward and ensure the enactment of these priority legislations within 2023,” said Finance Undersecretary Cielo Magno, who leads the department’s tax reform team.
Aside from the five measures, the DOF is also pursuing the imposition of a tax on single-use plastic bags and a value-added tax on nonresident digital service providers.
Other priority reforms of the department for immediate passage are the passive income and financial intermediary taxation and rationalization of the mining fiscal regime.
The LEDAC serves as a consultative and advisory body to the President, playing a vital role in shaping programs and policies essential to the realization of the national economy’s goals.