MANILA, Philippines — The Department of Finance (DOF) is planning to submit to Congress today the draft of its second tax reform bill focusing on income taxes and tax incentives of corporations.

In an interview last week, Finance Secretary Carlos Dominguez said the DOF is targeting to submit Package 2 of its Comprehensive Tax Reform Program (CTRP) today once Congress resumes its session.

“We should be ready by the 15th, because that’s when they open (sessions),” Dominguez told reporters.

Under the CTRP Package 2, the DOF is proposing for the reduction of corporate income tax rates to 25 percent from the current 30 percent and the rationalization of fiscal incentives given to certain business sectors. 

Only industries that meet the criteria based on performance, transparency and target would have their incentives retained, the DOF said.

The package, however, proposes for a sunset provision for existing incentives, which is a maximum of five years. Under the proposal, the coverage of the Fiscal Incentives Review Board should include all incentive recipients, from state corporations to enterprises within ecozones. 

However, Dominguez said the package may not be revenue-neutral as originally proposed by the DOF.

When asked if they will introduce more measures into the bill, he said, “we have no choice.”

“I mean, just like package 1, we will make a case for it then Congress will decide how we will move forward,”Dominguez said.