DOF and DTI Officials Discuss Updates on the Tax Reform and Fiscal Incentives in the Philippines at the 2nd “Power Hour” Seminar in Tokyo
The Philippine Embassy in Japan and the ASEAN-Japan Centre co-organized the second “Power Hour: Philippines-Japan Economic Relations” seminar on 17 January 2019 at the Siazon Hall of the Philippine Embassy in Tokyo.
Finance Undersecretary Karl T. Chua highlighted the strong macroeconomic fundamentals and continuous positive growth of the Philippine economy which now allows the country to think of long-term reforms, such as the comprehensive tax reform program.
He emphasized that “this is the first time in the history of our country [Philippines] where we are doing the tax reform whose primary purpose is not to bring down deficits and debts; it is to bring down poverty and inequality.” He expressed hope that within the Duterte Administration, the Philippines will graduate from a lower-middle income to an upper-middle income country.
Undersecretary Chua explained salient provisions of the Tax Reform for Attracting Better and High Quality Opportunities (TRABAHO) Bill, which aims to lower the corporate income tax rate gradually from 30 to 20 percent, while broadening the tax base by making fiscal incentives performance-based, targeted, time-bound and transparent.
Assistant Secretary Rafaelita M. Aldaba from the Department of Trade and Industry explained the Philippine government’s efforts to align TRABAHO’s Strategic Investment Priorities Plan with the Philippines’ Inclusive Innovation Industrial Strategy.
She stressed that to sustain the Philippines’ growth, it is important to have a globally competitive and innovate industries supported by a comprehensive incentive package comparable with the country’s neighbors.
Undersecretary Chua answers questions raised during the Q&A session.
The “Power Hour” provided a platform for consultation between the Philippine government and the Japanese investors, business persons, and the media to discuss the impact of the proposed tax reform on the Philippine investment environment.
H.E. Jose C. Laurel V, Philippine Ambassador to Japan, welcomed over ninety participants from more than forty private companies, business chambers, Japanese government agencies, and the media.
After the seminar, Ambassador Laurel hosted a New Year’s party and offered a toast for a successful 2019.
A similar event was also held in Osaka on 18 January 2019.
An initiative of the Philippine Embassy in Japan, the “Power Hour” is a series of roundtable discussions on Philippines-Japan economic relations, particularly on trade, investment, infrastructure, and tourism. The first “Power Hour” was held on 10 September 2018 with Budget and Management Secretary Benjamin E. Diokno who spoke on quality infrastructure for sustainable connectivity.
