Senator wants tax bracket revised-A A +A
Friday, May 2, 2014
SENATOR Paolo Benigno "Bam" Aquino IV on Friday said that there is a need to update the country's tax brackets and threshold to encourage citizens to declare their true income and pay their taxes.
Aquino filed Senate Bill 1942 seeking to review and reform the current tax system set by the National Internal Revenue Code, which was passed in 1997.
"Now is the time to get this updated and be attuned to the present time," Aquino said. "We cannot continue using outdated tax brackets and a threshold which were approved fifteen years ago."
Aquino further said that the salary of a management level employee 15 years ago will probably be equivalent to the salary of an entry level call center agent today because of inflation and other economic factors.
Under Aquino's bill, Section 24 of the National Internal Revenue Code of 1997 will be amended by adjusting the levels of net taxable income and simplifying the nominal tax rates in computing individual income tax, based on current prices.
"The Tax Reform Act effectively lowers the taxes on the Filipino working class, allowing them to enjoy a higher net income and increasing their purchasing power," Aquino said.
The senator also assured that the bill would not impose a burden on the micro, small, and medium enterprises (MSMEs) that comprise a majority of employers in the Philippines.
"It also supports the government's push for inclusive growth while ensuring that government is still able to raise funds for social programs that directly benefit the poor,” Aquino said. "It is a win-win solution that offers the greatest benefit to the greatest number of Filipinos."
Aquino added that the bill also adjusts the tax level of the upper one percent (1 percent) of taxpayers, making sure that the government is able to collect a larger share of income from those who can afford to pay more. (Camille P. Balagtas/Sunnex)