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15-Jul-2017 12:29 by 10 Comments

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This means that from 2016 to 2022, the Philippines should spend a total of P1.073 trillion on urban and rural infrastructure; P718 billion on education, P139 billion on health and P268 billion on social protection, wel­fare and employment.

Our farmers will be unable tor raise their productivity and thus remain poor,” he said.

Finance Undersecretary Karl Kendrick Chua said the PIT rates re­duction law would result in revenue losses of P127.4 billion in 2018, the first year of its proposed implementa­tion.

But he added that such foregone revenues would be offset by gains totaling P301.6 billion from the ad­ditional revenues from the proposed broadening of the VAT and adjusting the excise tax on fuel and automo­biles, for a net gain of P174.2 billion.

“This is the time to break the vicious cycles of the past and carve a new path to a prosperous future for all our people.” Expectations The DOF expects to raise from its proposed Tax Reform for Accelera­tion and Inclusion Act an additional P174.2 billion in yearly revenues, of which a substantial portion would be spent on targeted transfer programs that would benefit the country’s most vulnerable sectors.

The first of a series of tax-reform packages submitted by the DOF to Congress last September seeks to lower PIT) rates.

In healthcare, the DOF-proposed tax-reform plan will enable the govern­ment to upgrade 300 local hospitals, build 6,793 new ba­rangay and rural health cen­ters, and hire an additional 2,098 doctors, 4,560 nurses, and 3,328 midwives between 20.

“It will allow us to achieve 100 percent Phil Health coverage at higher quality of services,” Dominguez said.In its original form, Chua said Package One of the tax-reform pro­gram is projected to raise an addition­al P111.2 billion from the removal of certain VAT exemptions, except for basic essentials, P45 billion from automobile taxes, and P145.4 billion more from the fuel-tax adjustment.Chua said that up to 40 percent of the incremental revenues collected from the first DOF-proposed tax-re­form package “would be used for targeted transfers to low-income and vulnerable sectors.” “We recognize that the tax reform will affect a number of vulnerable people.He said, however, that if the tax-reform program fails to get approved in its entirety by Congress, these 6 million targeted Filipinos still trapped in extreme poverty would be doomed to their fate because gross domestic product (GDP) expansion will not be sustained at 7 percent, the economy will likely suffer a credit-ratings downgrade, and the benefits of continued high growth will remain exclusive to the rich.“Without a dramatic in­crease in investments, the country will be consigned to growth below 6 percent—a purgatory for an emerging economy with great poten­tial.In infrastructure, this will ensure that the government has enough funds to concretize 3,714 kilome­ters of national gravel roads, 10,473 kilometers of national asphalt roads, and 30,209 kilometers of local gravel roads, along with irrigating some 1.3 million hectares of land and providing some 7,834 isolated barangays and 23,293 isolated sitios with road access, he added.

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