The Duterte administration is on the right track with its very ambitious infrastructure program and comprehensive tax reform. The two are expected to support the growth momentum of the Philippines, according to ADB (Asian Development Bank).
Back in July, ADB’s Asian Development Outlook supplement report increased to 6.5 percent from 6.4 percent. This year’s forecast was within the administration’s target range.
Richard Bolt, ADB country director for the Philippines told a press conference that the Philippines’ infrastructure and social programs and tax reforms are being implemented right on schedule
According to Bolt, the government is already on the right track with the current programs being implemented and sustained. In a separate statement, he also said that collective effort of the government is now bearing fruit.
According to the ADB, the first under the comprehensive tax reform program that would decrease personal income tax rates while increasing new or additional taxes on consumption would boost domestic demand.
The Department of Finance said that the first tax reform package is right on track for passage before the year ends and is for implementation in January 2018.
The ADB said that “further progress in the ’Build, Build, Build’ program and advancing comprehensive tax reforms will be vital to sustain strong growth.”