President, Congress back passage of DOF priority reforms by year end

The Department of Finance (DOF) welcomes the endorsement of the Legislative-Executive Development Advisory Council (LEDAC) of five key fiscal and economic reforms proposed by the Department for legislative approval within the year.

During a meeting chaired by President Ferdinand R. Marcos, Jr. on July 5, the LEDAC approved 20 measures for Congressional approval by December 2023.

“We extend our appreciation to the President and our legislators for their decisive support. The passage of these measures is crucial in creating an environment conducive to sustainable and inclusive economic growth,” said Finance Secretary Benjamin E. Diokno.

Among these measures are: the Public-Private Partnerships (PPP) bill, aimed at leveraging private sector resources as a catalyst for capital and economic growth; reforms in real property valuation and assessment to broaden the tax base used for property-related taxes of both national and local governments and to ensure transparent, reliable, and market-responsive property valuation; the creation of a sustainable pension framework for military and uniformed personnel; the ease of paying taxes bill designed to enhance taxpayer compliance; and the automatic income classification of local government units.

The PPP bill, Ease of Paying Taxes bill, Real Property Valuation and Assessment Reform bill, as well as the LGU Income Classification bill, were swiftly approved by the House of Representatives on third reading. All four are now in advanced stages of legislation in the Senate.

On the fifth measure, the DOF has been actively consulting with military and uniformed personnel in order to develop a fair and fiscally sustainable pension system.

“We will continue to collaborate with our champions in the Senate and House of Representatives to shepherd the legislative agenda forward and ensure the enactment of these priority legislations within 2023,” said Finance Undersecretary Cielo D. Magno, who leads the Department’s tax reform team.

Aside from these five measures, the DOF is also pursuing the imposition of a tax on single-use plastic bags and a value-added tax on nonresident digital service providers.

Other priority reforms of the Department for immediate passage are the passive income and financial intermediary taxation and rationalization of the mining fiscal regime.

The LEDAC serves as a consultative and advisory body to the President, playing a vital role in shaping programs and policies essential to the realization of the national economy’s goals.

Composed of 20 members, including Chairperson President Ferdinand R. Marcos, Jr., Vice President Sara Z. Duterte, seven Cabinet members including the Finance Secretary, eight representatives from the Senate and House of Representatives, a local government representative, a youth sector representative, and a private sector representative, the Council ensures multi-sectoral perspectives and comprehensive decision-making.