By Joann Santiago
MANILA, April 8 (PNA) — Economic managers are proposing a tax package that would offset the proposed cut in government revenues for 2015.
This after the inter-agency Development Budget Coordination Committee (DBCC) on Tuesday recommended a total of Php 66.9 billion cut in government’s revenue target to Php 2.275 trillion, down by 2.6 percent compared to the Php 2.337 trillion earlier.
Budget and Management Secretary Florencio Abad, in a briefing Tuesday night, said revenue target of the Bureau of Internal Revenue (BIR) was cut by Php 46.96 billion.
Bulk of the cut was due to lost revenues from the measure that increased tax exemption cap on bonuses from Php 30,000 to Php 82,000. The measure was signed into law by President Benigno Aquino III last February.
Also, Php 16.9 billion of it was due to expansion of the list of minimal benefits such as those under the collective bargaining agreements (CBAs) and productivity incentives schemes, which are exempted from income tax.
Also, revenues of the Bureau of Customs (BOC) was slashed by Php 20 billion due to the impact of lower oil prices.
Under the said proposal, BIR’s revenue goal for this year will now be Php 1.67 trillion from Php 1.72 trillion while BOC’s would be Php 436.4 billion from Php 256.4 billion.
Abad said the tax package entails both legislative and administrative measures, thus, they will coordinate with lawmakers for its approval.
In the same briefing, Finance Undersecretary Jeremias Paul Jr. said they would submit a copy of their proposal to President Benigno III.
”We are scheduling a meeting with him,” he said. (PNA)