(Eagle News) – Department of Finance Secretary Carlos Dominguez III has said the administration’s “massive infrastructure program” and comprehensive tax reform package would drive the inclusive growth of the country.
According to Dominguez, the first element was indispensable as the Philippines for decades has lagged behind its neighbors in economic investments, grappling with a debt overhang.
Dominguez was apparently referring to the Build, Build, Build program of the Duterte administration.
Under the program, the government aims to complete 75 flagship and “game-changing” projects before 2022.
“We have to close the infra gap to achieve investment-led growth and evolve a truly inclusive economy,” Dominguez said.
Dominguez said the second element, which is the tax reform program, “is unavoidable.”
“To meet the challenge of a larger and younger labor force, we need to fund social spending in education and public health. We need to bring down our income tax rate close to the regional average to make our economy more attractive to investments,” he said.
The secretary noted that the Duterte administration has partly achieved this goal, with the passage of the Tax Reform for Acceleration and Inclusion law.
The law intends to slash personal income tax rates for individual taxpayers while raising additional revenues.
Dominguez noted that the other tax reform packages were now being prepared by the finance department to make the existing tax system fairer and at par with those of other countries in the region.
He said the country needs to address the “unevenness” in the economic development of its regions, as with other emerging archipelagic economies.