PCCI pays courtesy visit to Finance Secretary Diokno
Discusses passage of policy measures that support business

Seated from left: Tammy Lipana, PCCI Tax Committee Member; DOF Secretary Benjamin Diokno; George Barcelon, PCCI President; Atty. Benedicta Du-Baladad, PCCI Director for Legislation and Taxation.  Standing from left: Merryl Abaño, PCCI Policy and Program Officer; Elisha Sanchez, PCCI Policy and Program Officer;  Perry Ferrer, PCCI Vice President for Industry Affairs;  Alfredo Yao, PCCI Honorary President and Director for Banking;  Sergio Ortiz-Luis, PCCI Honorary President and Treasurer; Atty. Carlos Carado, PCCI Taxation Committee Chair; Arch. Felino Palafox, PCCI Vice President for Trade Affairs;  Ruben Pascual, PCCI Secretary-General; DOF Assistant Secretary Dakila Napao; DOF Undersecretary Cielo Magno;  Rhuby Conel, PCCI Assistant Secretary General for Advocacy, Research and Corporate Communications.

On January 13, 2023, members of the Executive Committee and officers of the Taxation Committee of PCCI paid Secretary Benjamin E. Diokno of the Department of Finance a courtesy visit to discuss important measures that support the growth of business.

Atty. Benedicta Du-Baladad affirmed PCCI’s continuing support for the following revenue-related bills that the Department of Finance (DOF) is championing:

• Comprehensive Tax Reform Program Package 3: Real Property Valuation Reform and Package 4: Passive Income and Financial Intermediary Taxation Act

• Capital Market Development Act

• Ease of Paying Taxes Bill

• Imposing Value-added Tax on Digital Transactions in the Philippines

The bills have passed the third and final reading at the House of Representative and undergoing hearings at the Senate Committee on Ways and Means.

Secretary Diokno welcomed the revival of the PCCI-BIR Joint Tax Committee, as Atty. Benedicta Du-Baladad expressed PCCI’s desire to revive it.  The Joint Committee is a mechanism for consultation created during the time of President Arroyo, where issues on tax administration were discussed.  It helped the government get a quick buy-in of new rules and regulations from the business community.

Atty. Carlos Carado informed Secretary Diokno that PCCI submitted a discussion paper to the BIR last November. It highlighted proposals for additional non-taxable de minimis benefits particularly phone and internet allowance granted to employees, as well as adjustments on the amounts of these non-taxable fringe benefits, 13th-month pay, and other benefits.  Atty. Carado emphasized that fringe benefit rules only needed to be updated in consideration of the continuously rising prices of commodities.  Secretary Diokno replied that the DOF will review the proposal.

Mr. Perry Ferrer asked for a review of BIR Memorandum Circular 24-2022 which effectively abolished the cross-border doctrine for exporters doing business in ecozones.  Secretary Diokno assured that the private sector will be included in the technical working group that will be created to review this policy.

Other issues regarding new regulations concerning VAT, customs warehousing problems, and the experiences of MSMEs in closing their businesses were also conveyed by PCCI officials to the Finance Secretary.

PCCI President George Barcelon stressed PCCI has consistently been involved in working with the government and has acted as a conduit between the government and the private sector. He vowed for PCCI to continue to fulfill its duty as a coordinator for the government. --- Elisha Sanchez

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