Noy asked to certify as urgent income tax reform bill

MANILA, Philippines - Senior administration lawmakers urged yesterday President Aquino to certify as urgent the bill seeking to reduce individual income taxes to ease the burden of fixed-income earners.

Ako Bicol party-list Rep. Rodel Batocabe said it was difficult to understand why Malacañang and the Department of Finance (DOF) were strongly against the measure when it will boost spending and saving power, and thus promote growth.

“I can easily rebut the argument the government will lose P29 billion (from lowering income taxes). Every year, government agencies ask Congress for budget, and we learn that agencies accumulate unspent funds granted to them by Congress,” Batocabe said. “If they cannot even spend their budget, then that P29 billion can easily be covered by the unspent funds of the agencies.”

1-BAP party-list Rep. Silvestre Bello III said the President is widely seen as against the income tax reform despite compelling reasons for its immediate passage.

“If President Aquino is serious about passing tax reform, then he should certify it as urgent. Otherwise, I’ll doubt his sincerity. We have to remember that he already said he is against it. If they (Malacañang) are saying now that he wants it but it is not certified urgent, it would show that they are just politicizing the issue,” he said.

Bello added that the House committee on ways and means, chaired by Marikina City Rep. Romero Quimbo, has finished the draft income tax reform bill but has not reported it out of the panel because of pressure from Malacañang.

“Now, they’re (Malacañang) singing a different tune because they have seen the negative responses from our people on the President’s opposition,” Bello said.

Quimbo admitted there is a strong clamor in the House for Aquino to certify the measure as urgent. He also suggested that Aquino convene the Legislative-Executive Development Advisory Council (LEDAC) to tackle the measure and other priority reform bills.          – With Christina Mendez