Senator Aquilino "Koko" Pimentel III

MANILA - Senator Aquilino "Koko" Pimentel III expects Filipinos to start enjoying lower taxes by 2018, as legislation for reforms are now pending.

"The sponsors were ready in the 16th Congress except that the Executive branch was not enthusiastic about the measure. But now tax reform has been, was promised by President Duterte and Congress is ready," Pimentel said at the sidelines of the 112th anniversary of the Bureau of Internal Revenue (BIR).

Pimentel was a special guest at the event, along with Finance Secretary Carlos Dominguez.

In his speech, Dominguez tougher news for the agency, saying he is not in favor of raising value added tax (VAT) rates to compensate for lost revenues due to tax reform.

"By some estimates we could double VAT collections simply by being more efficient," he said.

Instead of higher rates, Dominguez asked the BIR to raise revenues with a "friendlier" attitude toward taxpayers, including simpler tax forms, airier offices, and the elimination of lines.

"Let the taxpayers breathe, you are collecting their money after all," he said.

Tax reform won't impact collections this year, but the target of P2.025 trillion is 40 percent higher than 2015's total take of P1.442 trillion.

Pimentel said they are working to raise the salaries at the BIR by excluding the bureau from the Salary Standardization Law. He said Congress will get it done after the Tax Reform Law is passed.