Press Releases

On the approval of funding sources for Bayanihan 3

May 3rd, 2021

House tax committee approves funding sources for Bayanihan 3; Salceda says panel aims to keep deficit in check

House Ways and Means Chair Joey Sarte Salceda (Albay, 2nd district) says that his committee hopes to “keep the fiscal deficit” in check by coming up with funding sources for the third Bayanihan package, as the House tax panel approved the sections of the proposed stimulus package that pertain to revenue generation to fund stimulus and aid programs.

During the Committee’s regular meeting on Monday, Salceda stressed that the Committee “bears in mind that we are now at high fiscal deficit levels.” Hence, Salceda says, the Committee has come up with provisions that will provide funding sources for the package without adding to the country’s borrowing.

Under the version approved by the Committee, the Bangko Sentral ng Pilipinas (BSP) may make additional advances to the national government of up to 10% of average income of the National Government for FYs 2018 to 2020.

Mandatory dividend remittances by state-run firms will also be increased from 50% to 75%, while the President will also have the power to withdraw capital from overcapitalized government -owned and controlled corporations (GOCCs).

Salceda says that the Committee is also working with the Department of Finance (DOF) to pass taxes on e-sabong and on Philippine Offshore Gaming Operations (POGO).

House tax panel commits to keeping deficit tame

Salceda also reiterated that the Committee will do its best to ensure that the proposed third Bayanihan package will not increase the deficit substantially.

“We are already in front of the pack among all members of the ASEAN. So, we are trying to trim the deficit impact as much as we can,” Salceda said.

Salceda added that the Committee’s intends to pursue other revenue measures, such as closing VAT loopholes on digital companies, the fiscal regime on mining, and the Ease of Paying Taxes Act.

“We will also continue working with the DOF and with the revenue agencies to improve tax administration and enforcement, using our briefings and investigations to do fact-finding.” Salceda said.

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