CEBU, Philippines - Senate majority floor leader Alan Peter Cayetano warned the Bureau of Internal Revenue of the possible repercussion to the country’s economy of its latest move to tax the marginalized income earners.
Cayetano believes that taxing marginalized earners is counterproductive.
“It is not all about collection lang. Kapag masyado nang mahigpit pati yung pinakamaliit e-tax mo, what will happen here? I guarantee na mag-backfire yan. Instead of our economy going up, it will go down,†Cayetano said.
Cayetano was in Cebu yesterday as guest speaker during the 17th General Assembly of Cebu News Workers Multi-purpose Cooperative.
He explained that sari-sari store owners, trisikad drivers, fishermen, etcetera are engaged in this type of livelihood due to lack of job opportunities or lack of capital.
“It is a good move for BIR to collect more taxes but this is a wrong direction. Tuwid nga ang daan pero mali naman yung daan,†he said.
Cayetano admitted that it is not the marginalized earners who are tax cheaters but the rich people.
“Aaminin na natin ang katotohanan, it is the very rich ang nandadaya ng taxes hindi yung very poor. Ang sari-sari store owners at minimum wage earners sagad na sa pagbabayad ng taxes. Pigang-piga na yan,†Cayetano stressed.
According to him, the BIR should instead look into the “big fish†like the smugglers, drug lords, corrupt people, and big corporations who hired lawyers in order to evade paying taxes.
Under BIR Memorandum Circular No. 7-2014, marginalized income earners are required to pay income tax but are exempted from paying value added tax and business tax. (FREEMAN)