Given the current administration’s massive infrastructure initiative and new tax reform law, BPI Family Savings Bank is optimistic to hit double-digit loan growth this year.
Joaquin Abola, Senior Vice President at BPI Family Savings Bank, said the Tax Reform for Acceleration and Inclusion (TRAIN) law and the “Build, Build, Build” program of the government can propel the group’s loan portfolio.
“I think [the TRAIN law] is going to be very positive, [especially] when you look at that in combination with Build, Build, Build,” he said in a press briefing.
“The economy is going to improve,” Abola added.
Nicholas Mapa, economist at BPI, stressed that taxpayers have been given freedom and more purchasing power after the implementation of TRAIN law.
The government’s new tax reform law exempts taxpayers with annual taxable income below P250,000 from paying personal income tax rates.
He added Filipinos have the capacity to avail loans, such as auto loans.
“The additional purchasing power freed up by the TRAIN law should give potential car buyers the ability to purchase vehicles despite the increase in prices, fuel and overall inflation,” he said.