Cayetano to consolidate with different sectors for PIFITA

With many groups supporting measures regarding tax reform, Sen. Cayetano welcomes further discussions and deliberations for Passive Income and Financial Intermediary Taxation Act (PIFITA).

Senate Ways and Means Committee Chair Pia S. Cayetano welcomed the wide support originating from various sectors for the quick passage of the proposed Passive Income and Financial Intermediary Taxation Act (PIFITA). Under House Bill No. 304, the tax rates on interest income from regular savings and short-term deposits would be decreased from the current 20% to 15%. The bill also aims to reduce the premium tax rate of HMO insurances from 5% to 2%.

At the commencement of the panel hearing conducted on Wednesday, February 12, the bill received much support from key sectors and raised only a few concerns. Such groups who backed the legislation were people from the Bangko Sentral ng Pilipinas (BSP), Bureau of Internal Revenue (BIR), Bureau of the Treasury (BTr), Capital Market Development Council (CMDC), Insurance Commission (IC), Association of Global Custodians (AGC), Philippine Insurers and Reinsurers Association (PIRA), and Philippine Stock Exchange (PSE).

Cayetano appreciated the support of these groups. "I am very happy to hear that most (stakeholders) are supportive (of PIFITA), and there are just a few issues that need to be resolved," the senator stressed in a sideline interview.

The senator implicated that the concerns raised would be considered during the drafting of the bill. Also, Finance Undersecretary Karl Chua stressed that the administration is open to endorse amendments that are problematic for some industries.

Cayetano also noted that the panel plans to conduct two technical working groups which would address specific issues on the bill.

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