MANILA, Philippines – The Department of Finance (DOF) on Wednesday said the government lost at least 1.5 percent of gross domestic product in 2011 due to revenue loss from granting income tax holidays, reduced income tax rates and duty to investments.
DOF said based on the initial Tax Expenditures Report, the government lost P144 billion in 2011 from tax perks, which also translates to 9.3 percent of government’s expenditures and 10.6 percent of government revenues during the year. The report only covered 29 percent of all firms registered in the governmemt’s investment promotion agencies, making the figures conservative.
“With the current tax incentives system that has been largely unaccounted and uncoordinated, the government loses billions of pesos in revenues every year which could have helped improve our fiscal position,” Finance Secretary Cesar Purisima said.
The state agency is pushing for the enactment of the Tax Incentives Management and Transparency Act (TIMTA) and the Fiscal Incentives Rationalization (FIR) bill to improve the mechanism in granting tax incentives. DOF said TIMTA will help the government account for the magnitude of support given to a sector and the appropriateness of using tax incentives in achieving socioeconomic goals. FIR, on the other hand, coordinates the grant of incentives to different sectors.
“Tax incentives distort the tax structure of the Philippine economy. Through these twin fiscal incentives reform measures, in the long term the government will enhance the country’s fiscal capacity to continue to build on its macroeconomic fundamentals, level the playing field and improve competitiveness and investment opportunities. Accounting for tax incentives needs to be transparent, and these tax incentives need to be granted properly,” Purisima added.
In its Fiscal Affairs Department report in November 2013, the International Monetary Fund said the Philippines has an incentives regime that is “very generous and unnecessarily complex.” –Jovan Cerda (philstar.com)
It’s women’s month!
“Support women every day of the year!”
Invoke Article 33 of the ILO constitution
against the military junta in Myanmar to carry out the 2021 ILO Commission of Inquiry recommendations against serious violations of Forced Labour and Freedom of Association protocols.
Accept National Unity Government
(NUG) of Myanmar.
Reject Military!
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Monthly Observances:
Women’s Role in History Month
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Week 1: Environmental Week
Women’s Week
Week 3: Philippine Industry and Made-in-the-Philippines
Products Week
Last Week: Protection and Gender-Fair Treatment
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Daily Observances:
March 8: Women’s Rights and
International Peace Day;
National Women’s Day
Mar 4— Employee Appreciation Day
Mar 15 — World Consumer Rights Day
Mar 18 — Global Recycling Day
Mar 21 — International Day for the Elimination of Racial Discrimination
Mar 23 — International Day for the Right to the Truth concerning Gross Human Rights Violations and for the Dignity of Victims
Mar 25 — International Day of Remembrance of the Victims of Slavery and the Transatlantic Slave Trade
Mar 27 — Earth Hour
