ASSERTING that at least P96.8 billion in tax breaks have already been granted under his term, President Aquino said he is still not backing income-tax reforms—even just the proposal adjusting tax brackets to inflation—until there is no compensating revenue measure on the table.
Mr. Aquino asked the proponents of tax bills to first seek solid sources of funds to fill in the projected fiscal gap from foregone revenue seen to ensue from proposed adjustments in the bill amending individual and corporate income-tax rates set two decades ago.
In a coffee meeting with reporters at Hotel InterContinental Kuala Lumpur on Sunday after attending the Asean summit in Malaysia, Mr. Aquino added that he would rather not rush approval of a pogi bill at the expense of his successor.
“Ang premise i-review natin ’yung income- tax rate, parang iyon ang latest na narinig ko sa kanila, para sabi nila ‘to keep up with the inflation,’” the President said, referring to his recent meeting with Congress leaders seeking Palace support for the income-tax relief bill.
Mr. Aquino recalled asking Congress leaders to first find a “balance” that would offset the P30-billion revenue loss from the proposed tax-reform measure, which the next administration could reverse by raising taxes anew.
“So tanong ko lang nga sa Kongreso, sabi ko: “Malaki ang pressure sa inyo. Talagang pogi bill ’yan. Sana may balanse para sigurado tayo,” he said. “Ayokong sabihin, ‘sige babawasan ko ang buwis niyo’ tapos baka naman ’yung sumunod… Tapos ’di ba ’yung susunod sa akin magsabi: ‘wala tayong magagawa kailangan kong taasan ang buwis niyo.’ Mumurahin naman ako ’no.”
Aquino added: “Oh baka naman maalala pa ng taongbayan na ako ang magmungkahi na bawasan na alam ko namang dadagdagan. Ayoko naman masabi ’yon. So, ayaw mong pinaasa tapos wala. Gusto kong masigurado at iyon ’yung dini-discuss namin sa kanila: sana may balanse. May tatanggalin kayong ganito, saan natin babawiin ’yan? Saan gaganda ’yung pangongolekta natin para mabawi ’yung mawawala diyan. Para sigurado lang tayong lahat ng mga ginagawa natin matuloy natin ang pagpopondo sa kanila.”
The President pointed out that during his watch, “we have already actually given at least 96.8 billion in tax relief over the past several years,” noting that this was “brought about by the increase of the threshold bago sa 13th-month pay bago mo ita-tax.”
He noted that “the previous figure was P30,000, kapag lumagpas doon taxable na, naging P82,000 na ngayon. So tinaasan natin ’yan. Iyong isa pa iyong tinatawag nilang ‘de minimis benefits.”’
Aquino recalled that when he was campaigning for the presidency in 2010, “sabi ko hindi ako magtataas ng buwis. Ang sabi ko kokolektahin ’yung nandiyan na. At sa totoo lang ang target kasi sa tax-collection administration efficiency was 16 percent. And we have actually done only 13.6 percent, okay.”
The President said they also found out that many “professionals” were paying tax rates barely above the minimum-wage level. “Karamihan nang…ang daming mga professional ulit, ano, na nagbabayad, parang bahagyang lumaktaw sa minimum wage. So we are talking about doctors, lawyers, etc…. Parang of the estimated 2 million in that category, 400,000 ang nagbabayad.. may 2 million na sector tayo na dapat ma-tax, okay. Ang nagbabayad lang talaga 400,000. Iyong 400,000 na iyon ’yon ’yung nagbabayad na parang bahagyang lumagpas sa minimum wage ang kinikita nila, iyon ang issue.” Meanwhile, another bill seeking to adjust the levels of taxable income to inflation has been filed recently at the House of Representatives.
In House Bill 6258, the vice chairman of the House Committee on Ways and Means, Nacionalista Party Rep. Raneo E. Abu of Batangas, is pushing for the reduction of the income tax of an individual taxpayer to be based on the current Consumer Price Index (CPI).
The measure also seeks to amend Section 24 of the National Internal Revenue Code (NIRC) of 1997, as amended, pertaining to income-tax rates, so the rates of tax on taxable income of individuals shall be computed in accordance with and at the rates established in the following schedule: those earning not over P20,500, the income tax shall be 5 percent; over P20,500, but not over P61,500, the tax shall be P1,025 plus 10 percent of the excess over P20,500; over P61,500, but not over P143,500, the tax shall be P5,125 plus 15 percent of the excess over P61,500; over P143,500, but not over P287,000, the tax shall be P17,425 plus 20 percent of the excess over P143,500.
In addition, those earning: over P287,00 but not over P512,500, the tax shall be P46,125 plus 25 percent of the excess over P287,000; over P512,500, but not over P1,025,000, the tax shall be P102,500 plus 30 percent of the excess over P512,500; and over P1,025,000, the tax shall be P256,250 plus 32 percent of the excess over P1,025,000. Abu said his proposal aims to give every ordinary Filipino taxpayer the equity he deserves in the country’s tax laws, which will put him and the family he supports in a better position to cope with life’s daily financial demands.
“By doing this much-needed fair tweaking of the individual income-tax brackets, together with the amounts of personal and additional exemption, in accordance with current CPI and automatically after every three years thereafter, this government can rightfully claim that it has done justice to every ordinary Filipino working man,” Abu said.
Liberal Party Rep. Romero S. Quimbo of Marikina, chairman of the House Committee on Ways and Means, has expressed hope that the measure adjusting the levels of taxable income to inflation will be passed into law before the 16th Congress ends next year. “We will take them up, at the same time, as the other bills,” Quimbo said.
Quorum
Nationalist People’s Coalition Rep. Rodolfo T. Albano III, meanwhile, urged fellow legislators to diligently attend the remaining sessions of the 16th Congress, not only to pass vital pieces of legislation, but also leave a legacy of being a working and productive Congress.
Albano said while he recognizes the fact that every lawmaker has to attend to district constituents, every House member’s primary duty is to attend sessions and actively participate in debates and discussions of measures both of local and national importance in the House.
“We have to make the most out of remaining session days in Congress. Let us cooperate and help the House leadership make the quorum to enable the lower house to transact it business,” he added.
“Obviously, the national and local election snext year is foremost in the minds of my fellow legislators and all is ask, is for my colleagues to focus on and dedicate their time to pass urgent and vital legislation in the remaining session days of the House. After their legislative duties are done, they can campaign all they want for 2016,” Albano said.
(With Jovee Marie N. Dela Cruz)
1 comment
for pnoy to give us tax breaks, he has to lower the budget. for him to lower the budget, we must reduce corruption. pony can lower the budget and make everyone work to make it enough to their expense.