The House of Representatives has approved on third and final reading House Bill 304 or the Passive Income and Financial Intermediary Taxation Act, more popularly known as Package 4 of the Duterte administration’s Comprehensive Tax Reform Program.
It has also approved on third and final reading, with a vote of 201 in favor and six against, House Bill No. 300, the measure proposing to lift restrictions against the employment of foreign professionals in the country on third and final reading.
House Bill No. 300, which seeks to amend Section 4 and 8 of Republic Act No. 7042 or the Foreign Investment Act of 1991, is a consolidation of three bills authored by Reps. Victor A. Yap (NPC, Tarlac); LRay Villafuerte Jr. (NP, Camarines Sur), and Joey Sarte Salceda (PDP-Laban, Albay).
The House voted 186 in favor of HB 304, six rejected it, while two abstained. The bill now proceeds to the Senate.
HB 304 consolidated six legislative proposals filed by Salceda, Junie Cua (PDP-Laban, Quirino); Estrellita B. Suansing (PDP-Laban, Nueva Ecija); Sharon Garin (AAMBIS-OWA partylist); Michael Olylon L. Romero (1Pacman party-list); Ann Hofer (Zamboanga Sibugay), and Horacio Suansing (PDP-Laban, Sultan Kudarat).
HB 304 and 300 are the second and third priority tax measures disposed of by the House in the 18th Congress. The first bill that proposes increase in alcohol tax and imposition of taxes on vape products was approved last month.
Salceda, chairman of the House Committee Ways and Means, said HB 304 will rationalize the multiple tax rates and bases in the financial sector to make it “simpler, fairer, more efficient and regionally competitive.”
The PIFITA bill will “deepen the shallow capital market,” lessen administrative and compliance cost, and level the uneven playing field among financial intermediaries, he added.
Previously approved by the House during the 17th Congress, HB 300 will further open the Philippines to foreign investors by allowing foreign professionals to be employed in small and medium domestic market enterprises with paid in capital of $100,000.
Villafuerte hailed the swift approval of the two measures which he said are very important and timely. “This is another record-breaking feat of the House of Representatives which was made possible under the leadership of Speaker Cayetano. Because of our effective legislative process, the PIFITA and Amended FIA bills were thoroughly discussed and debated upon prior to their final approval,” Villafuerte said. (Ben Rosario)
