MANILA, Philippines – If President Aquino is really concerned about the welfare of the people, he should certify as urgent the proposed tax reform bill, Sen. Ferdinand Marcos Jr. said yesterday.
Marcos said the administration should be sensitive to the plight of a great majority of Filipinos who have to deal with high income tax rates on top of the rising cost of goods and services.
“If Malacañang is really sincere in its promise of development for everyone, it should certify the bill as urgent,” Marcos said.
He said there may not be enough time for Congress to pass the measure as the priority for the rest of the year would be the proposed P3.002-trillion national budget and the campaign period would start early next year.
Malacañang has not been receptive to the tax reform measures in spite of the strong backing they have from leaders of Congress.
Primarily, the tax reform proposals intend to adjust the income tax rates so that the lower- to middle-income earners would not have to carry too huge a tax burden.
“Our tax structure is simply outdated that even those in the middle class are now in the bracket of the rich, paying tax for the rich. It’s time we do something to correct the situation,” Marcos said.
Based on the data of the Bangko Sentral ng Pilipinas, prices of goods and services have increased by 110 percent between 1997 and 2012 but the individual income tax brackets have remained unchanged since 1997.
On the other hand, Marcos cited the latest Family Income and Expenditure Survey, which showed that the income of the lowest-earning 70 percent of Filipinos had grown 137 percent between 1992 and 2012 and as a result many low- and middle-income families now have to pay higher taxes.
Last Thursday, Senate Committee on Ways and Means chairman Sen. Juan Edgardo Angara filed a new income tax reform bill that seeks to adjust the levels of taxable income to inflation to ease taxpayers’ burden and to make the tax system more equitable and progressive.
“While our initial proposal was to lower the tax rates across-the-board and compress the tax brackets from seven to five, adjusting income taxes to take into account inflation is a more viable proposal for the remaining time of the present administration,” Angara said.