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We are very much committed to protecting the poor, vulnerable, and low-income sectors.

The poorer the household is, the more social pro­tection subsidies it will get especially, during the first year of the Tax Reform Package One implementation,” Chua said.

“If we fail to pass the rev­enue-enhancement measures, we will lose the growth mo­mentum that took us years to build and we will face the spec­ter of large budget deficits and move closer to a debt crisis,” Dominguez said.In its original form, Chua said Package One of the tax-reform pro­gram is projected to raise an addition­al P111.2 billion from the removal of certain VAT exemptions, except for basic essentials, P45 billion from automobile taxes, and P145.4 billion more from the fuel-tax adjustment.Chua said that up to 40 percent of the incremental revenues collected from the first DOF-proposed tax-re­form package “would be used for targeted transfers to low-income and vulnerable sectors.” “We recognize that the tax reform will affect a number of vulnerable people.This initial package aims to make the tax system more progressive through the low­ering of personal income tax (PIT) rates to make these at par with those in the region, expanding the value-added tax (VAT) base by limiting ex­emptions to necessities such as raw food, education and health care, while increasing excise taxes on oil and automobiles.Dominguez said the con­gressional approval of the tax-reform plan would allow the government to achieve 100-percent enrolment and completion rates, build 80,066 more classrooms and hire 157,412 more teachers be­tween 20, with the end in view of attaining the ideal teacher-to-student ra­tio and classroom-to-student ratio under more conducive learning environments for our youth.

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