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)
September 18 –
International Equal Pay Day
“Increase wages now,
more than other cost items.
For widespread, practical equality!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
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September –
5 Sept – Intl Day of Charity
7 Sept – Intl Day of Clean Air for Blue Skies
8 Sept – International Literacy Day
12 Sept – United Nations Day for South-South Cooperation
15 Sept – International Day of Democracy
16 Sept – International Day for the Preservation of the Ozone Layer
17 Sept – World Patient Safety Day
18 Sept – International Equal Pay Day
21 Sept – International Day of Peace
26 Sept – International Day for the Total Elimination of Nuclear Weapons
27 Sept – World Tourism Day
28 Sept – International Day for Universal Access to Information
29 Sept – International Day of Awareness of Food Loss and Waste
30 Sept – World Maritime Day
Monthly Observances:
Health, Safety and Sanitation Month
National Clean-up Month
Civil Service Month
National Peace Consciousness Month
Social Security Month
Rule of Law Month
National Teachers’ Month (Sept 5-Oct 4)
Weekly Observances:
Sept 17 – 23:
World Clean and Green Week
Week 2: Education Week
Week 4: Medicine Week
Last Week: National Family Week
Daily Observances:
Third Saturday:
International Coastal Clean-up Day
Third Monday: World Health Day
Last Friday: National Maritime Day
Sept 8: National Literacy Day
Sept 15: Philippine Medicine Day
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