The wide-ranging economic impact of the Tax Reform for Acceleration and Inclusion (TRAIN) 1 package was among the many topics discussed recently at an interview given by Department of Finance (DoF) Secretary, Carlos G. Dominguez, to representatives of Oxford Business Group (OBG).
Dominguez highlighted that TRAIN 1 had attained 108.1% of its revenue target in 2018, enabling the government to increase public infrastructure investment.
“By 2020, the DOF aims to have all tax reform packages in place, including the reduction of the corporate income tax from 30% to 20% and the reduction in the number of capital income tax rates from 80 to 42,” he added. “Even though the 5.6% GDP growth in the first quarter was lower than expected, now the national budget for 2019 has been enacted, the DOF continues to expect GDP growth to surpass 6% by the end of the year.”
Large-scale infrastructure development is a priority for the current administration under the umbrella of its flagship Build, Build, Build program, which includes 75 priority projects. Although concern has been raised in some quarters about over-reliance on Official Development Assistance (ODAs), Secretary Dominguez outlined how the country has maintained a balanced source of financing.
According to the DOF data, China and Japan have each committed $9bn in ODA, while South Korea has pledged $1bn.
“With the tax reform programme creating a robust flow of revenue, we now have the means to invest in upgrading our logistics backbone,” stated Dominguez. “These commitments complement the financial support received from multilaterals, such as the World Bank and the Asian Development Bank”.
Furthermore, the secretary said that DoF have taken great care to ensure that the economic returns on major projects far outweigh the costs of financing, and that they have a diverse pool of project funding.
OBG’s representatives in the Philippines interviewed DoF Secretary Carlos G. Dominguez as part of the research for The Report: Philippines 2019, the group’s forthcoming publication on the country’s economic development and investment opportunities.
The report will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments.
Click here to subscribe to Oxford Business Group’s latest content: http://www.oxfordbusinessgroup.com/country-reports
About Oxford Business Group
Oxford Business Group (OBG) is a global research and advisory company with a presence in over 30 countries, from Asia, the Middle East and Africa to the Americas. A distinctive and respected provider of on-the-ground intelligence on over 30 of the world’s fastest growing markets for sound investment opportunities and business decisions.
Through its range of products – Economic News and Views, OBG Business Barometer – CEO Survey, OBG Events and Conferences, Global Platform – exclusive video interviews, The Report publications – and its Consultancy division, OBG offers comprehensive and accurate analysis of macroeconomic and sectoral developments.
OBG provides business intelligence to its subscribers through multiple platforms, including its direct 6 million verified subscribers, Dow Jones Factiva subscribers, the Bloomberg Professional Services subscribers, Refinitiv’s (previously Thomson Reuters) Eikon subscribers, and more.
For more information, please contact:
Marc-André de Blois
Director of PR and Video Content, Oxford Business Group
|802 Publishing Pavilion, Production City
PO Box 502 659 Me’aisem First Dubai UAE
T +971 4 426 4642
F +971 4 426 4641
|6th Floor 105 Victoria Street
London SW1E 6DT
T +44 203 457 2825
F +44 17 3026 0274
Register to receive our Economic Updates: oxfordbusinessgroup.com/register