By Cielito M. Reganit
MANILA, Sept. 30 (PNA) — Two lawmakers on Tuesday assured that members of the two Chambers of Congress are working hand in hand to pass priority measures that are aimed at setting better conditions for inclusive growth even beyond 2016.
Senator Paolo Benigno”Bam” Aquino IV and Marikina Rep. Romero “Miro” Quimbo made the assurance during the Philippine Economic Briefing held at the Philippine International Convention Center in Pasay City.
The economic briefing, with the theme “The Philippines: Shaping our Future,” was attended by Cabinet members and leaders from the business sector – both local and foreign – and the academe.
The lawmakers said that several common priority measures between the Legislative and the Executive are currently being pushed in Congress that, among others, are aimed at instituting tax and incentives reform, facilitate the doing of business in the country and ensuring a level business playing field.
The measures, once enacted, would provide a more conducive business climate that would attract more investments and provide more employment opportunities in the country.
These include bills on Fiscal Incentive Rationalization, Amendment to the Build-Operate-Transfer (BOT) Law, Amendment to the Bangko Sentral ng Pilipinas, the Customs and Tariff Modernization Act, Amendment to Cabotage Law, Rationalization of Mining Revenues and the Fair Competition Law, among others.
Rep.Quimbo said that one of the major indications of inclusive growth is employment, which is the end objective of the proposed measures.
“However, besides the aforementioned bills, Congress needs to pass a law that would amend the economic provisions set forth in the 1987 Constitution in order to significantly increase the entry of foreign direct investments,” he said as he stressed that now is the opportune time to do it.
He said the House of Representatives is presently conducting floor deliberations on amending certain key economic provisions of the Constitution to ease restrictions on foreign ownership of business entities.
Likewise, the Marikina lawmaker said that overhauling the individual income tax system would have a major impact on the economic situation of the labor sector, thus promoting inclusive growth.
“The current tax bracket is anachronistic, having been outpaced by inflation, and are too exorbitant,” he said.
Quimbo noted that the biggest taxpayers are the regular wage earners, contributing 85 percent of all taxes paid.
Meanwhile, tax compliance of professionals is only at 41 percent.
“Since we can not raise the minimum wage, we are working on a bill that would maximize tax exemption for the labor sector,” he said.
“The House has just passed on third reading House Bill 4970 which would increase the ceiling for the total exclusion from gross taxable income of employees’ 13th month pay and other benefits from the current Php30,000 to Php70,000,” he said.
Meanwhile, a similar bill filed by Senator Ralph Recto at the Senate is now in its second reading.
“Once enacted before the year ends, employees in both the public and private sectors will be able to take a larger amount of 13th month pay and bonuses by 2015,” Quimbo said.
For his part, Senator Aquino said that the passage of the Fair Competition Act into law will eliminate monopolies, cartels and other unfair business practices that lead to high prices of goods and services.
He noted that the Department of Trade and Industry has already a framework in place to connect small and medium enterprises (SMEs) to larger markets.
“However, the push for inclusive growth would be much easier with the help of a competition policy that gives entrepreneurs and small businesses the capability to compete against big businesses.
“If passed, the Competition Law can support our micro, small and medium enterprises, let them grow into larger enterprises and provide more jobs to our countrymen,” Aquino emphasized.
“It is the key to push SMEs forward to the ASEAN common market,” he said.
In the meantime, Cabinet Secretary Rene Almendras said that the passage of the Bangsamoro Basic Law (BBL) would make a significant economic impact on the country.
“Once passed into law, the BBL would unlock the economic potential and activity in Mindanao,” Almendras said.
The House Ad Hoc Committee on the BBL began deliberations on the proposed autonomy bill last September 24.
Senate president Franklin Drilon and House Speaker Feliciano Belmonte Jr. have both expressed optimism that the BBL would be passed by Congress by the first quarter of 2015. (PNA)