By Charmaine A. Tadalan
Reporter

MEASURES that will further liberalize the economy to attract more foreign capital and make it easier to do business in the country made up a list of 28 proposed laws which 14 local and foreign groups have pitched to the 18^th Congress.

The list, contained in a July 30 joint statement, came ahead of a Legislative-Executive Development Authority Council (LEDAC) meeting scheduled on Aug. 5 to discuss priority measures for the first of three regular sessions of the current Congress.

Senate Majority Leader Juan Miguel F. Zubiri on Monday evening told reporters that closer coordination between the Executive and Legislative branches of government was needed to avoid presidential vetoes like the one last Friday that struck down a proposed law to further tighten labor contracting rules, which both chambers of Congress had worked on. “… [A]nother lobby group will approach the President, another chamber… will approach the President to have it vetoed, and it is vetoed while already certified [by the President as an urgent measure] — I think we should probably get coordination with Malacañang and that this may not happen again in the future,” Mr. Zubiri said.

Senate President Vicente C. Sotto III said in a mobile phone message on Tuesday that the LEDAC meeting will discuss “priorities for the first regular session.”

Asked if Monday’s agenda includes all remaining tax reforms, which the House of Representatives has vowed to approve by yearend, Mr. Sotto replied “yes.”

National Economic and Development Authority Undersecretary Rosemarie G. Edillon said in a separate text message, Tuesday, “there will be a LEDAC full council meeting in August” though there is “no definite date yet.”

Chaired by the President, LEDAC — formed under Republic Act No. (RA) 7640 of December 1992 to ensure close coordination between the Executive branch and Congress on priority measures — also consists of the Vice-President, the Senate President, the Speaker of the House of Representatives, seven Cabinet members designated by the President, three senators designated by the Senate President, three members of the House designated by the speaker, as well as a representative each from local government, the youth and the private sectors.

The 14 business groups that proposed the legislative priorities were the Alyansa Agrikultura; American Chamber of Commerce of the Philippines, Inc. (AmCham); Australia-New Zealand Chamber of Commerce of the Philippines, Inc.; Bankers Association of the Philippines; Canadian Chamber of Commerce of the Philippines, Inc.; European Chamber of Commerce of the Philippines, Inc.; Foundation for Economic Freedom; Information Technology and Business Process Association of the Philippines; Japanese Chamber of Commerce and Industry of the Philippines, Inc.; Korean Chamber of Commerce of the Philippines, Inc.; Makati Business Club, Management Association of the Philippines; Philippine Association of Multinational Companies Regional Headquarters, Inc. and the Semiconductor and Electronics Industries in the Philippines, Inc.

The first set of proposed priorities, numbering 13, is topped by amendments to the 82-year-old Commonwealth Act No. (CA) 146, or the Public Service Act, which will lift foreign ownership limits in utilities; the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) Bill which will reduce corporate income tax and overhaul fiscal incentives by making them performance-based and time-bound and by removing redundant ones.

“We convey our support on key provisions of the TRABAHO bill that are beneficial to our country’s economic growth but urge policy makers to review the other conditions that may negatively impact our global competitiveness,” the business groups said in a joint statement, Tuesday.

The first list also included measures amending RA 7042, or the Foreign Investments Act of 1991, which will remove restrictions on foreigners from practicing their professions in the Philippines; to RA 8762, or the Retail Trade Liberalization Act, which will reduce the required minimum paid-up capital for foreign entrants to the country’s retail sector; a proposed Apprenticeship Program Reform; Build Operate Transfer Law amendments; Freedom of Information Act; Bank Secrecy Law amendments; Lifting foreign equity restrictions; another tax reform to centralize property valuation and assessment; another package that will simplify the capital income and financial Tax system; a proposed open access in data transmission act; and one forming a Water Department.

The second list consists of a proposed Farm Entrepreneurship Act; Philippine Economic Zone Authority Act amendments; a further increase in excise tax on alcoholic beverages; Holiday Rationalization Act; National Disaster Risk Reduction and Management Authority Act; National Land Use Act; National Traffic and Congestion Crisis Act; Philippine Contractors Accreditation Board amendments; amendments to the Philippine Ports Authority Charter; Water Regulatory Commission Act; Civil Aviation Authority of the Philippines Act amendments; CA 541 amendments to modernize rules for awarding public works contracts; National Transportation Safety Board Act and Philippine Airports Authority Act.

AmCham said the first list consists of proposals that got the highest number of votes among the chambers.

THE SENATE Ways and Means committee will conduct parallel tax reform hearings with the House of Representatives, while the Department of Finance (DoF) has begun meeting with both chambers, in order to ensure prompt approval of the bills.

“I have started consultations with the DoF and soon will conduct hearings, open to all sectors,” Ways and Means committee Chairperson Senator Pia S. Cayetano said in a statement.

“As chair of the Senate Ways and Means committee, I look forward to working with our counterparts in the House of Representatives and our economic managers led by the Finance department in exploring ways to fund social services for our people.”

Section 24 of Article 6 of the 1987 Constitution provides that all appropriation, revenue and tariff bills should originate from the House.

Senate President Vicente C. Sotto III had said in a mobile phone message on Monday that the chamber could decide to hold parallel hearings, as practiced in the past Congress. “Pwede, it’s up to her,” Mr. Sotto said, referring to Ms. Cayetano.

President Rodrigo R. Duterte, in his fourth State of the Nation Address on July 22, asked the 18^th Congress to pass all the remaining tax reform measures by the end of 2019.

The DoF has been meeting with lawmakers ahead of the tax hearings. “We are now in regular talks and briefings with relevant legislative committee chairs for the coming hearings,” Finance Assistant Secretary Antonio Joselito G. Lambino II said in a text message on Tuesday.

The government has so far enacted Republic Act No. (RA) 10963, which slashed personal income tax rates and increased or added levies on several goods and services; RA 11213; the Tax Amnesty Act of 2019 that grants estate tax amnesty and amnesty on delinquent accounts that remained unpaid even after final assessment; and RA 11346, which will gradually increase the excise tax rate on tobacco products to P60 per pack by 2023 from P35 currently.

Remaining tax reforms up for legislation consist of proposals to reduce the corporate income tax rate gradually to 20% by 2029 from 30% currently and to make fiscal incentives time-bound and performance-based; to further increase the excise tax on alcohol products and electronic cigarettes; to centralize real property valuation and assessment; and to simplify the tax structure for financial investment instruments.

These had been approved on final reading in the House by December last year but remained at the committee level in the Senate as the 17^th Congress ended on June 3.

Of the proposed tax laws, the DoF hopes the second package, which will cut corporate income tax rates to make them at par with those within Southeast Asia and will overhaul tax incentives, will be prioritized. “Ang marching order kasi is to pass all of them by the end of the year…” Mr. Lambino said. “All of them are priorities pero kung siguro meron talagang kailangan i-prioritize in terms of timing, sana ’yung Package 2 (but if there is a need to prioritize in terms of timing, let it be Package 2).” — Charmaine A. Tadalan