Header AD

Moody's: TRAIN law addresses the weaknesses of PH fiscal profile

Political risks not affecting gov’t reforms — Moody’s
Published June 28, 2018, 10:01 PM
By Chino S. Leyco

Political risks remain elevated in the Philippines, but they are not seen as among the hindrances to the Duterte administration’s ability to pass its reforms, one of the three major international credit rating agencies said yesterday.

In a briefing, Christian de Guzman, vice president at Moody’s Investors Service, admitted that there was a lot of uncertainty when President Rodrigo R. Duterte took office in July 2017, particularly on his administrations’ foreign relations.

“The concern here is that political risks could crystallize in a way that pre-empts reform. However, fast forward to 2018 we do see that has not come to pass,” de Guzman said, noting the recently enacted first tax reform law.

“We have not seen evidence that political risk is affecting this government’s ability to pass reforms and that reform particularly positive is TRAIN,” he added, referring to the tax reform for acceleration and inclusion act. While TRAIN “was not a slam dunk” for the government, de Guzman said its passage resulted in higher tax revenues, which were beyond the Department of Finance’s (DOF) expectations.

“Revenue performance year to date has actually been very good,” the Moody’s representative said. “We actually have seen the positive impact and it does go someway into addressing the weaknesses of the Philippines fiscal profile.”

He is also confident that the Duterte administration has the ability to pass the second installment of its comprehensive tax reform program (CTRP), which aims to overall the present corporate income tax and the fiscal incentives system.

Moody's: TRAIN law addresses the weaknesses of PH fiscal profile Moody's: TRAIN law addresses the weaknesses of PH fiscal profile Reviewed by AsianPolicy.Press on 6:58:00 AM Rating: 5

Post AD