PNoy urged to approve bill on lowering income taxes

CEBU, Philippines – A senator on Tuesday urged President Benigno Aquino III to certify as urgent the legislative proposals seeking to lower income tax rates, according to a report from GMA News online.

The same report said Senator Francis “Chiz” Escudero, a close ally of Aquino, said the president should consider either certifying as urgent one of the pending bills in Congress or sending his own proposal for the consideration of lawmakers.

"The reality is that the input of the President is critical when it comes to tax measures," Escudero said. "The lawmaking process stops at his desk. If he doesn’t like a bill, he won’t sign it."

The senator said that the present 32-percent tax rate is one of the highest in the region.

Escudero, former chairman of the Senate committee on finance, added that a "presidential certification will make the bill a priority measure and veto-proof."

"More than the specifics of the bill, what is important is the President’s message to Congress that ‘I want this measure passed,'" he said.

Escudero is one of the authors of Senate Bill 716 amending the National Internal Revenue Code to adjust the levels of net taxable income and nominal tax rates.

He said tax rates should be adjusted to reflect the erosion in purchasing power caused by inflation.

The proposal is pending before the Senate committee on ways and means under Senator Sonny Angara.

Last month, Angara said the Senate alone cannot pass the bill lowering income tax rates because all revenue measures must originate from the House of Representatives.