IDEAS home Printed from https://ideas.repec.org/p/agy/dpaper/202406.html
   My bibliography  Save this paper

Examining the Impact of the PIFITA Bill

Author

Listed:
  • Renato E. Reside, Jr.

    (University of the Philippines School of Economics)

  • Ma. Lourdes Lacson

    (ACERD)

  • Fernando T. Aldaba

    (Ateneo de Manila University)

Abstract

The Passive Income and Financial Intermediary Taxation Act (PIFITA) has been passed by the Philippine Congress to the Senate and is currently awaiting ratification. However, there currently are no estimates of the impact of passage of the bill into law on the Philippine economy. This paper attempts to do this by gauging its impact on investment through the changes in the user cost of capital. The results of regression analysis confirms that a reduction of various taxes on passive income lowers the user cost of capital, which stimulates investment.

Suggested Citation

  • Renato E. Reside, Jr. & Ma. Lourdes Lacson & Fernando T. Aldaba, 2024. "Examining the Impact of the PIFITA Bill," Department of Economics, Ateneo de Manila University, Working Paper Series 202406, Department of Economics, Ateneo de Manila University.
    • Handle: RePEc:agy:dpaper:202406
    as

    Download full text from publisher

    File URL: https://drive.google.com/file/d/1tUudwqXBuF9Zy53hxzePyEIReb5cGqp9/view
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Philippines; taxation; investment; financial intermediation; user cost of capital;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • G2 - Financial Economics - - Financial Institutions and Services
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agy:dpaper:202406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jat Tancangco (email available below). General contact details of provider: https://edirc.repec.org/data/deadmph.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.