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The
bill, yet to be published and which still needs Senate approval,
is expected to be a leaner version of an initial draft that drew
opposition from some lawmakers to measures deemed to burden
low-income families.
The tax reform measure is critical to President Rodrigo
Duterte's economic program, which focuses on infrastructure
spending and fiscal efficiency to lift growth to as much as 8
percent before his six-year term ends in 2022.
Duterte, whose 11-month presidency has been defined by a bloody
anti-narcotics campaign, threw his weight behind the tax bill
and urged Congress on Monday to immediately approve and support
his plans.
The expected revenues from the bill, which cut the personal
income tax rate, expanded the value-added tax base, raised
excise taxes on fuel and automobiles, and slapped levies on
sugar-sweetened beverages, were expected to fall short of the
162 billion pesos ($3.26 billion) the government sought.
"The department of finance is very happy with the turnout,"
assistant finance secretary Paola Alvarez told Reuters.
"We are hoping the Senate will also support the president's bill
that will be the foundation of this administration's
socio-economic agenda."
Duterte enjoys a clear majority in the House of Representatives
and in the Senate. The bill was approved by 246 of the 256
congressmen who voted.
Duterte's economic managers have targeted infrastructure
spending of 5.4 percent of GDP this year, rising to 7.4 percent
of GDP by 2022.
They are pinning growth plans on infrastructure projects to
create jobs, stimulate the economy and attract foreign investors
put off by high power prices and transport bottlenecks that eat
into profits.
The Philippines received a record $7.93 billion in net foreign
direct investment last year, but that figure pales in comparison
with regional peers, such as Malaysia's $12.6 billion and
Singapore's $61.6 billion.
($1=49.7360 Philippine pesos)
(Reporting by Karen Lema; Editing by Clarence Fernandez
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