Duterte To Cut Down Taxes – Hopes for Stronger Economy
“My administration will pursue tax reforms towards a simpler, more equitable and more efficient tax system that can foster investment and job creation. We will lower personal and corporate tax rates,”
this is one of the statements that caught public’s attention during Duterte’s first ever State of the Nation Address on July 25.
Tax is one of the most cliche’ word for our government. Numbers of conflicts aroused because of this well debated law. Some lawmakers wants to put amendments to improve the implementation of this provision, but there are also some who put these matter on a lesser priority, that’s why both employees and corporate sectors are suffering. But as President Duterte had his SONA, he said with conviction that he wants to aggressively pursue lower tax rates. Philippines has the second highest income tax rate, and the highest corporate tax rate in Southeast Asia. But things are going to be different now that the Duterte government wants to put an ease for both sides,
“At the household level, there must be sufficient income for all Filipinos to meet the basic food and non-food needs for their families and we will continue to attract investments that will generate thousands of jobs a year, jobs that are suitable for the poor and less skilled members of the workforce,”
Duterte also wants to implement a lower tax to attract more foreign investors to invest in the country. This is also one of his to maintain or even heighten the growth of our economy, Duterte also mention in his address
“by the end of my term I hope and pray to hand over an economy that is much stronger.”
Budget Secretary Benjamin Diokno had said that his department plans to hike infrastructure spending to up to 7% of the gross domestic product (GDP) this year, to address the sorry state of infrastructure. This is higher than the 5% target of Former President Benigno Aquino III’s administration.
One of Duterte’s plan in expanding the country’s economic growth is the Mindanao Logistics Infrastructure Network an initiative of the Department of Public Highways, that aims to reduce the logistic cost in areas in Mindanao by improving linkage roads to key ports and other production areas.
“We’ll accelerate infra spending including national roads, bridges and implementing Mindanao Logistics Infrastructure Network,”
said Duterte. Other than higher infra spending, Duterte’s another initiative to boost the economy is by investing heavily on human resources to modernize agriculture and develop rural areas.
If all these platforms shall be put into actions, there is no doubt that we will not just have a better economy, but a better Nation in no time.