Department of Finance — WIKIMEDIA.ORG/EDGAR DANN ALCANTARA, SHEENA THEA ALCANTARA
THE Department of Finance (DoF) said 91% of micro, small and medium enterprises (MSMEs) indicated in a survey their full support for the passage of the second tranche of the tax reform law.
In a report submitted to Malacañang, the DoF said in statement on Thursday that the findings were contained in independent, third-party surveys conducted in Cebu City, San Fernando, La Union and Clark in November.
The second tranche, also known as the Tax Reform for Attracting Better and High Quality Opportunities (TRABAHO) bill, aims to reduce corporate income tax from the current 30% to 20%.
Finance Secretary Carlos G. Dominguez III said that only a small percentage of businesses representing the “interests of a few” are opposing the bill due to the fiscal incentives they have long been enjoying.
The DoF also said that the Sulong Pilipinas surveys found that 92% of MSMEs consider the bill’s passage as an “important factor in the development of the country.”
“It will raise revenue to fund our infrastructure and social development programs. It will bring our tax effort to levels compatible with the most dynamic economies of the region,” Mr. Dominguez said.
The DoF also said MSMEs recommended measures to boost economic growth, including: streamlining of government processes and reduction of bureaucracy, proper planning and implementation of infrastructure projects to avoid business disruption, increased visibility of the military and police in rural and coastal areas, the extension of martial law in Mindanao, more health facilities and services nationwide, and the provision of tax incentives for MSMEs.
The DoF also said that businesses’ top recommendations include focusing on agricultural growth, simplifying loan requirements for MSMEs and farmers, improved access to education especially for poor families, and provision of livelihood training for beneficiaries of the Pantawid Pamilyang Pilipino Program (4P) cash=transfer initiative. — Reicelene Joy N. Ignacio