MANILA – The Philippines needs to grow 5.1 percent for the rest of the year to meet its 2016 growth targets, Finance Secretary Carlos Dominguez said Monday.
Dominguez said, despite the temporary erosion in revenues the tax reform plans will bring, government is ready with counter-measures.
“We have counter-measures to cover those erosions in revenue, and they will certainly, we’ll end up with more revenues in the long run,” he said.
The Duterte government plans to lower personal and corporate income tax rates, which is among the highest in the region, to increase tax compliance and grow a robust middle class.
Dominguez said cutting down tax rates as well as relaxing foreign ownership limits will help attract foreign investments and build capital.