The measure seeks to institutionalize an income classification system reflective of the financial capability of provinces, cities, and municipalities.
The Real Property Valuation Reform (RPVAR) is Package 3 of the Comprehensive Tax Reform Program (CTRP), which aims to promote the development of a just, equitable, and efficient real property valuation system.
It will broaden the tax base used for property and property-related taxes of the national and local governments, as well as improve tax collections without increasing the existing tax rates or imposing new taxes.
The Passive Income and Financial Intermediary Taxation Act (PIFITA) is Package 4 of the Comprehensive Tax Reform Program (CTRP).
The measure will harmonize the taxation of passive income and financial intermediaries by reducing and simplifying the complicated tax rates on financial transactions.
With the goal of spurring greater capital inflow and economic activity, the measure will help boost the competitiveness of capital and financial products by aligning the country’s financial tax regime with regional peers.
The proposed measure aims to amend the National Internal Revenue Code (NIRC) or Tax Code by including non-resident digital service providers as being liable “for assessing, collecting, and remitting the value-added tax on the transactions that go through its platform” in order to level the playing field.
Digital service providers include online licensing softwares, website filters and firewalls, mobile applications, video games, webcast and webinars; digital contents such as music, files, images, text and information, electronic marketplace, search engine services, social networks, cloud storage services, online newspapers, journal subscriptions and payment processing services, among others.
The Rationalization of the Mining Fiscal Regime aims to establish a single and rationalized fiscal regime applicable to all mining agreements while ensuring the sector’s sustainability and the government’s equitable share to mining revenues.
This will be achieved through additional royalties, windfall profits tax, export tax, and ring fencing.
Revenues generated from the reform will be used to fund various government programs on disaster risk management, environment rehabilitation, and overall economic development.
The Motor Vehicle Road User’s Tax (MVRUT) was introduced to provide adequate funding for the maintenance of national and provincial roads, as well as address air pollution from motor vehicles.
The MVRUT is critical to attaining seamless mobility of Filipinos through roads that are safe, reliable, and sustainable.
Revenue from the MVRUT will finance the public utility vehicle (PUV) modernization program, providing 45% of incremental revenue, as well as the government’s road infrastructure and safety programs.
The proposed excise tax on single-use plastics (SUPs) seeks to address the long-standing issue of plastic pollution by promoting the use of recyclable packaging and ending the “throw-away culture.”
This environmental tax is expected to curb single-use plastic bags consumption by almost 25 percent while generating around 6.5 billion pesos in revenues in 2024, or the first year of implementation.
The Military and Uniformed Personnel (MUP) Pension Reform seeks to establish a sustainable system where MUPs can contribute and take vested ownership in their pension.
Under the proposed reform, the government will contribute alongside MUPs and can offer reliable and timely adjustments to the pension rates based on economic conditions and sustainability of the pension fund.
The Maharlika Investment Fund (MIF) was designed to serve as a vehicle for economic growth by making strategic and profitable investments in key sectors to preserve and enhance the long-term value of MIF that will span generations to come.
The MIF will serve as an additional source of financing to complement the government’s existing mechanisms to finance priority projects in pursuit of the government’s goals outlined in the Medium-Term Fiscal Framework (MTFF), 8-Point Socioeconomic Agenda, and the Philippine Development Plan (PDP) 2023-2028.
The proposed measure aims to facilitate a more effective and streamlined Public-Private Partnership (PPP) approval process, and simplify the procedures on infrastructure projects in order to establish an enabling environment for PPPs to flourish in the country.
PPPs are supportive of the 8-Point Socioeconomic Agenda, which prioritizes job creation through the promotion of trade and investments and improving infrastructure.
The proposed measure will allow taxpayers to file and pay for their internal revenue taxes through electronic channels or authorized Revenue Collection Officers or authorized Tax Software Providers, ensuring convenience and minimizing the risk of late payments.
It aims to improve tax compliance by making the system more taxpayer-friendly through simplified tax processes and enhanced taxpayer rights.
The Taxpayer Bill of Rights and Obligation (TBORO) was proposed to contain fundamental information aimed at helping taxpayers know their basic rights and obligations without the need to refer to complicated tax laws.
TBORO is aimed at protecting taxpayers against threats to their rights, particularly those stemming from undue discretions of tax authorities.