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A joint
report conducted by multilateral funding institution
World Bank (WB) and professional-services firm
PriceWaterhouseCoopers disclosed that business tax in
the
Philippines
is considered the highest among all members of the
Association of Southeast Asian Nations (Asean).
The
report disclosed that the total tax rate for businesses
in the Philippines is at 52.8 percent, which means that
for every P100 earned by a company, it has to remit
P52.80 in taxes to the government.
Trailing
behind the
Philippines
is Vietnam, which charges a total tax rate of 41.1
percent. The report, which polled 178 countries based on
the taxes they charge, showed the Philippines ranked
135th.
Other
Asean member-countries charge lower tax rates than that
charged by the Philippines on businesses. Thailand
charges a total of 37.7 percent, Indonesia charges 37.3
percent and Brunei charges 37.4 percent.
In view
of this, the National Competitiveness Council (NCC)
urged the government to look into how it could reduce
the taxes it charges on businessmen.
“The
government should reduce the taxes on business and
investors (who are into) areas where the
Philippines
has the potential to be the best in the world,” said NCC
private sector chairman Ambassador Cesar Bautista.
Bautista
also stressed that the country’s total tax rate should
be on a par with its Asean neighbors.
He
warned that investors can choose not to set up shop in
the country, especially if they find that the government
charges high tax rates.
The tax
payment system must be less bureaucratic in order to
collect the right taxes, Bautista added. |
