DOF calls on business sector’s support, says participation crucial to policy making

Finance Secretary Benjamin Diokno called on business sector partners to continue their efforts in support of the country’s economic resurgence.

“I call on our partners in the business sector to support the Marcos administration’s ambitious plan for the economic resurgence of the Philippines,” said Secretary Diokno in a message to the 48th Philippine Business Conference and Expo, organized by the Philippine Chamber of Commerce and Industry (PCCI) on October 19, 2022 (Wednesday).

He said that the Chamber’s continued participation will help sharpen the country’s policy toolkit and ensure that the business environment remains competitive and in tune with market realities.

The PCCI is a business organization representing small, medium, and large enterprises, including local chambers and industry associations representing various business sectors. It is recognized as the sole official representative of the private business community, and has been a valuable partner of the DOF since the launch of Sulong Pilipinas in 2016.

Through the years, the Chamber has backed many of the Department of Finance (DOF)’s reforms, including the Tax Reform for Acceleration and Inclusion (TRAIN) Law, Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law, and the amendments to the economic liberalization bills.

Prior to the passage of CREATE, the Philippines had a restrictive income tax rate of 30 percent, which was among the highest in the ASEAN region.

Changes in fiscal policy, especially in the area of corporate income tax, has made the Philippines attractive to investors. Furthermore, the move to modernize incentives into a time-bound, targeted, performance-based, and transparent system has enabled the country to be at par with the rest of the region.

Assistant Secretary Juvy C. Danofrata of the DOF’s Fiscal Policy and Monitoring Group attended as a representative at the event where she expressed her gratitude for the Chamber’s support, and emphasized the importance of continuing to formulate policies that will fortify the country against economic risks.

“[A]s long as we make policy actions, based on a responsible and sustainable fiscal framework, then we will be able to weather the shocks that we are experiencing right now,” said Assistant Secretary Danofrata.

The government’s policy making stance is to ensure that the country has the spending flexibility it requires to address the immediate and future needs of the nation. Hence, the DOF is heading the implementation of the country’s first-ever Medium Term Fiscal Framework (MTFF) where fiscal prudence will be exercised in order to secure much-needed fiscal space.

At present, the DOF is pushing for the passage of the Real Property Valuation and Assessment Reform Bill, as well as the Passive Income and Financial Intermediaries Taxation Bill, which are the remaining packages of the previous administration’s Comprehensive Tax Reform Program (CTRP).