MANILA - The "urgent" passage of tax and other reforms is "critical" in securing the country's first "A" credit rating, Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Wednesday.
The Corporate Income Tax and Incentives Rationalization Act , the Passive Income and Financial Intermediary Tax, amendments to the Anti-Money Laundering Act of 2001 and Agri-Agra laws and reforms in financial consumer protection and deposit secrecy support the government's "Road to A" initiatives, Diokno said.
“The urgent passage of structural reforms is critical to the strategy of achieving an A-level credit rating within the next two years as this enhances the country’s institutional strength to manage the economy, which is a key indicator looked into by credit rating agencies,” Diokno said. Fitch Ratings on Tuesday upgraded its outlook on the Philippines to positive from stable. A positive outlook means an upgrade of the rating is possible. The Philippines is currently rated BBB, one notch below the minimum A score.
Receiving an "A" rating will mean lower borrowing costs and a favorable investment environment that support economic growth, Diokno said.