DOF, DTI Discuss PH Tax Reform, Fiscal Incentives in Tokyo

TOKYO 31 January 2019 — Over 90 participants from more than 40 private companies, business chambers, Japanese government agencies and the media were present during the second “Power Hour: Philippines-Japan Economic Relations” seminar at the Philippine Embassy in Tokyo’s Siazon Hall on 17 January 2019.

Co-organized by the Embassy and the ASEAN-Japan Centre, guests during the event were Finance Undersecretary Karl T. Chua and Trade and Industry Assistant Secretary Rafaelita M. Aldaba.

Undersecretary Chua highlighted the strong macroeconomic fundamentals and continuous positive growth of the Philippine economy which now allows the country to think of long-term reforms, such as the comprehensive tax reform program.

He emphasized that “this is the first time in the history of our country [Philippines] where we are doing the tax reform whose primary purpose is not to bring down deficits and debts, it is to bring down poverty and inequality.” He expressed hope that within the Duterte Administration, the Philippines will graduate from a lower-middle income to an upper-middle income country.

Undersecretary Chua explained salient provisions of the Tax Reform for Attracting Better and High Quality Opportunities (TRABAHO) Bill, which aims to lower the corporate income tax rate gradually from 30 to 20 percent, while broadening the tax base by making fiscal incentives performance-based, targeted, time-bound and transparent.

Assistant Secretary Aldaba explained the Philippine government’s efforts to align TRABAHO’s Strategic Investment Priorities Plan with the Philippines’ Inclusive Innovation Industrial Strategy.

She stressed that to sustain the Philippines’ growth, it is important to have a globally competitive and innovate industries supported by a comprehensive incentive package comparable with the country’s neighbors.

Ambassador to Japan Jose C. Laurel V welcomed the participants and hosted a New Year’s party and offered a toast for a successful 2019 after the seminar. 

A similar event was also held in Osaka on 18 January 2019.

The “Power Hour” provided a platform for consultation between the Philippine government and the Japanese investors, business persons, and the media to discuss the impact of the proposed tax reform on the Philippine investment environment.

An initiative of the Embassy, the “Power Hour” is a series of roundtable discussions on Philippines-Japan economic relations, particularly on trade, investment, infrastructure, and tourism. The first “Power Hour” was held on 10 September 2018 with Budget and Management Secretary Benjamin E. Diokno who spoke on quality infrastructure for sustainable connectivity. END

For more information, visit This email address is being protected from spambots. You need JavaScript enabled to view it./ www.tokyope.dfa.gov.ph/ www.tokyo.philembassy.net/ https://www.facebook.com/PHLinJapan/

Finance Undersecretary Karl T. Chua answers questions raised during the question and answer session. (Tokyo PE photo)