Tuesday, August 19, 2014

DOF, DTI agree on final perks bill draft

The Aquino administration has finally come up with a consolidated version of the fiscal incentives-rationalization bill and will submit this to Congress this week.
This was assured by Finance Secretary Cesar V. Purisima during the hearing for the proposed P2.606-trillion 2015 national budget at the Senate on Tuesday.
”We’ve reached an agreement with the DTI [Department of Trade and Industry], finally. We will submit this week the revised version [of the bill],” he told Senate President Franklin M. Drilon, when the latter asked about it. The bill hopes to provide further transparency in the incentives being extended by the various government agencies to ensure that sectors that provide large benefit to the people are given a big boost.
Rationalizing tax incentives is also targeted to ensure that the government is not wasting money, which should instead be used for the necessary infrastructure and social programs.
Two sectors are being considered for exclusion in the income-tax holiday privilege: low-cost housing development and mining exploration.
Purisima said they aim to increase revenues equivalent to about 2 percent of gross domestic product (GDP) over a period of time using this measure.
He said the lowest increase in revenues eyed from this measure is about 0.2 percent of GDP, or about P30 billion annually.

source:  Business Mirror

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