While individual taxpayers will get income tax breaks for the first P250,000 of their taxable income, the country’s 10 million poorest households will each receive almost P10,000 spread over the next three years, starting 2018 in unconditional cash transfers (UCTs) to help them cope with the minimal impact of the tax reform law on inflation, according to the Department of Finance (DOF).
Finance Secretary Carlos Dominguez III said the overhaul of the country’s outdated tax system to make it simpler, fairer and more efficient via the enactment of the Tax Reform for Acceleration and Inclusion Act (TRAIN) starting this year along with the funding support for education and infrastructure modernization are among the biggest achievements of President Duterte in 2017.
Among the TRAIN’s key provisions is the earmarking of up to 30 percent of the incremental revenues to be raised from this law for social services, which include UCTs of P200 a month (or P2,400 per year) for the country’s 10 million poorest households for 2018, which will increase to P300 a month (or P3,600 per year) in 2019 and 2020, or a total of P9,600 in cash subsidies for each household over this three-year period.
“The big part of the budget of course is the Department of Education, yan ang priority ni Presidente (that is the priority of the President). This is part of our investment in infrastructure. Ang pinaka- importante yong (The most important is the) infrastructure of the mind of our youth, so we really have to spend a lot on that and he has also passed the law providing free college education now, didn’t he? So those are the big achievements of President Duterte in 2017,” Dominguez said in a recent interview.
Source: dof.gov.ph
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