Tax reforms in limbo due to next year's presidential election

MANILA:  Economic managers are carefully
weighing the potential feedback among voters
if ever the Aquino administration gives a go
ahead to the proposed comprehensive tax
reform package aimed at easing the income
tax burden while further raising the value added
tax(VAT)

Budget Secretary Florencio  Babad confirmed
last week that a meeting last Aug 5 among President
Aquino ,his economic managers and Commissioner
Kim S Jacinto Henares of the  Bureau of Internal
Revenue (BIR) tackled the comprehensive tax,
reform package being pitched by the Department,
of Finance for the President 's approval.

However,Abad said another meeting would
be scheduled as more time might be ended to
asses the proposal 's possible impact on voter
sentiment in light of the national elections
to be held next year"I don't know {If President
Aquino will approve it} because it could be
difficult to talk about taxes during an election
season "the budget chief said

In a separate interview last Friday Henares
also confirmed that the Aug 5 meeting touched
on the comprehensive tax reform package ,but
she said discussions were cut short as the
President had to attend to "more important
matters

The comprehensive tax reform package proposes
to drastically ease the burden on income tax
while also slapping new or higher taxes on
consumption  ,It includes policy measure that
will entail legislation as well as tax administration
improvements

The package proposed to raise the tax exempt
cap on incomes of individuals and small businesses
,while also reducing to 25 percent the corporate
income tax ceiling from 30 percent at present

But the easing of burden on income taxes
would be compensated by increasing the VAT
to 14 percent from the current 12 percent and
jacking up the excise tax levied on oil products

DAILY  EXPRESS