MANILA – The Department of Finance (DOF) on Friday welcomed the endorsement of the Legislative-Executive Development Advisory Council (LEDAC) of five key fiscal and economic reforms proposed by the department for legislative approval within the year.
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 goal.
In a statement, the DOF said the economic reforms include the Public-Private Partnerships (PPP) bill, Ease of Paying Taxes bill, real property valuation, LGU (local government unit) Income Classification bill, Assessment Reform bill, and the military and uniformed personnel (MUP) pension bill.
“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,” Finance Secretary Benjamin Diokno said.
The PPP bill aims to leverage private sector resources as a catalyst for capital and economic growth while reforms in real property valuation and assessment seeks 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.
The reforms to the MUP pension system aims to create a sustainable pension framework for military and uniformed personnel, while the ease of paying taxes bill is designed to enhance taxpayer compliance.
The PPP bill, Ease of Paying Taxes bill, Real Property Valuation and Assessment Reform bill, as well as the LGU Income Classification bill, were swiftly approved by the House of Representatives on third reading.
The DOF said all four are now in advanced stages of legislation in the Senate.
For the reforms to the MUP pension, the DOF said it has been 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 D. Magno, who leads the Department's tax reform team.
Aside from these five measures, the DOF is also pushing for 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. (PNA)
