Finance Secretary Carlos Dominguez III is happy with the Bicameral Conference Committee’s approval of the first package of the proposed tax reform, gains from which is seen to reach PHP130 billion, near the PHP157 billion projected by the Department of Finance (DOF).
In a briefing after a field visit at the LafargeHolcim cement production plant in Norzagaray, Bulacan Tuesday, the Finance chief said the Committee’s approval of the initial Tax Reform for Acceleration and Inclusion (TRAIN) bill encourages Finance officials to work harder for the next batches.
“We are now ready for the TRAIN to leave the station,” he said, citing its advantage on the Duterte administration’s infrastructure program called “Build, Build, Build”.
“The PHP130 billion that we expect from the TRAIN, the net revenue effect, is certainly very close to the bill, the net revenue, that was passed in the House (of Representatives) so we are pleased that the legislature has given us to where we go to begin a really serious infrastructure program,” he said.
Under the Bicam-approved measure, which is awaiting ratifications from the House of Representatives and the Senate before it is submitted to the Office of the President for signature, the Bureau of Customs (BOC) will have the biggest revenue gains because of the higher excise taxes on fuel.
“The Bureau of Customs will be fully empowered in effect, especially since we are also implementing a fuel marketing system,” he said citing that this system would be implemented in 2018.
Fuel marking will be in place next year and Dominguez said this program would certainly help the government, particularly the BOC, identify smuggled, misdeclared or under-declared fuel.
Fuel marking is a process wherein a liquid solution is mixed with the oil product to check its grade and for the government to check if the company is paying correct taxes. (PNA)