Prominent business and tax advocacy groups have joined congressional leaders in backing the proposed tax reform program of the Department of Finance (DOF) that aims to overhaul the country’s 30-year old tax system to make it simpler, fairer and more efficient while raising enough revenues to fund the Duterte’s administration’s 10-point socioeconomic agenda.

These groups include the Federation of Filipino-Chinese Chambers of Commerce and Industry Inc. (FFCCCII), the Tax Management Association of the Philippines (TMAP), the Association of the Filipino Franchisers Inc. (AFFI), and the Philippine Institute of Certified Public Accountants (PICPA).

They pledged their support to the DOF-proposed reforms in the presence of Finance Secretary Carlos Dominguez III during a recent tax forum.

The FFCCCII, represented by Ricardo Yu, said at the tax forum that his group is supporting the DOF-proposed Tax Reform for Acceleration and Inclusion Act as this would help simplify the tax system and make it more equitable, which, in turn, would discourage evasion and avoidance.

“The Federation of Filipino-Chinese Chambers of Commerce supports the administration’s goal of making the country more competitive by pursuing a comprehensive and holistic tax reform program and to improve the tax administration system to serve as complementary measures to the proposed adjustment in income tax rates.” Yu said.

He added “We commit to supporting the government in its goal to provide a fairer, simpler and more efficient tax system to broaden the tax base and to encourage tax compliance.”

The TMAP, which has long been pushing for reforms in the country’s decades-old tax system, said the country could soon witness “the brightest day for tax reform.”

“TMAP would like to express our strong support for the tax reform program that your government is currently undertaking.” TMAP president Benedict Tugonon said.

“Now, it’s like an interplanetary alignment when all the stars are so much aligned, that is why we in TMAP and the taxpayers here in the Philippines, we are so hopeful this is the brightest day we have for tax reform,” he said at the forum.

Speaking on behalf of the AFFI, Teresita Ngan Tian said the proposed cut in the corporate income tax under the DOF tax plan would allow small and medium enterprises to expand, which, in turn, will create more jobs.

“We fully support the Comprehensive Tax Reform Program. Of course we small SMEs are the ones more affected and will benefit from this,” Tian said at the same forum.

“The lowering of corporate income tax will allow us more funds to invest in our expansion and improve our business, improve our internal resources so that we may be able to provide more employment for people,” she added.

Cecilia Patricio of the PICPA also backed the DOF tax reform program.

“We would like to express our full support to the Comprehensive Tax Reform Package of the Department of Finance and we, in PICPA, are willing to provide our inputs and just like other organizations here, we are willing to participate in the tax information dissemination as well in the tax education, not only of the taxpayers but also those involved in the collection of taxes,” Patricio said.

This tax forum at a Makati City hotel was organized by the Center for Strategic Reforms of the Philippines in partnership with the United States Agency for International Development (USAID), Integrity Initiative, Go Negosyo, Ateneo De Manila University-Graduate School of Business, Abrea Consulting Group (ACG), and AFFI.

At the end of that event, a Pledge of Support, which was signed by all business organizations, associations and individuals who are committed to provide a culture of honesty and integrity in paying taxes, was officially handed over to Dominguez.

The Pledge expressed the full support of the signatories on the adoption of a simpler, fairer and more efficient tax system, which will promote inclusive growth and ultimately benefit small businesses and ordinary employees.

This DOF tax plan also garnered support in that forum from congressional leaders, who have pledged to fast track legislative action on this “timely” comprehensive tax reform package that aims to fulfill the Duterte administration’s goal of inclusive growth.

Senators Juan Edgardo Angara, who chairs the Senate ways and means committee, and Paolo Benigno Aquino IV; Deputy Speaker Romero Quimbo and Rep. Dakila Carlo Cua, who chairs the House Committee on Ways and Means, had all cited the tax plan of the DOF.

Albay Rep. Joey Salceda, who is considered an economic expert in the House of Representatives, has similarly given his all-out support to the DOF-proposed reforms in one House ways and means committee hearing on the tax plan.

Vowing his full backing for the tax program, Salceda said the plan is much better than the one presented by the previous administration.

The DOF submitted to the House and the Senate its proposed Tax Reform for Acceleration and Inclusion Act last month in keeping with the new administration’s 10-point socioeconomic agenda, which aims to free 10 million Filipinos from poverty and transform the Philippines into an upper middle-income economy by the end of the Duterte presidency in 2022.

Dominguez said at the tax forum that the DOF tax bill was completed following consultations with members of the Cabinet, legislators, former Secretaries of Finance, prominent economists, stakeholder and business groups, and with various foreign embassies, global financial institutions and joint foreign chambers signifying their support for the tax reform proposal.

These include the embassies of Spain and China and the delegation of the European Union to the Philippines, the representatives of the World Bank and the Japan International Cooperation Agency, as well as former finance secretaries and many local organizations including the Federation of Philippine Industries, Philippine Exporters Confederation, Management Association of the Philippines, the Joint Foreign Chambers of the Philippines, and civil society groups.

“This is encouraging. It is unusual for such a comprehensive tax reform program to enjoy such a broad support,” he said.

The first package of the proposed tax reforms that the DOF had submitted to the Congress seeks to cut personal income tax (PIT) rates by adopting a modified gross PIT system; expand the value-added tax (VAT) base by reducing the coverage of its exemptions; adjust the excise taxes imposed on petroleum products; and restructure the excise tax on automobiles, except for buses, trucks, cargo vans, jeepneys, jeep substitutes and special-purpose vehicles.

Dominguez said the DOF was moving swiftly to propose reforms in the country’s decades-old tax system so that the government could raise enough funds for its planned accelerated spending on infrastructure, human capital and social protection programs, as a way to keep the economy on its high growth path and free 10 million Filipinos from poverty in six years’ time.