According to Filipino tax experts, the tax reform program of the tax administration may be passed into law before this year ends after it got the Senate’s approval.
The Tax Reform for Acceleration and Inclusion Act (TRAIN) Bill is the first tax reform package of President’s multi-year Comprehensive Tax Reform Program. TRAIN or Package One of the CTRP aims to slash income tax rates for majority of individual taxpayers, while generating additional revenues for the government’s massive spending on infrastructure and social services via the expansion of the value-added tax base, and adjustments in the excise taxes on fuel and automobiles, among other measures.
The House of Representatives approved its version of TRAIN as House Bill No. 5636 last May 31, while the Senate Ways and Means Committee has filed its version as Senate Bill 1592 last September 20. The Senate is set to start plenary debates on its TRAIN version later this month.
Package Two of the CTRP covers corporate income taxes and the modernization of fiscal incentives, in the first quarter of 2018. Package Three covers property taxation, Package Four deals with capital income taxation, and Package Five covers environment and luxury taxation and health measures from the second quarter of 2018.
