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By Prince Golez, Manila Reporter
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MANILA – Sen. Joel Villanueva is pushing for the adjustment of the personal income tax structure.
Villanueva’s Senate Bill No. 1062, or the Act Restructuring the Income Tax Imposed on Individuals aims to amend the country’s 1997 tax code.
The Philippines’ 32 percent personal income tax rate is one of the highest top marginal tax rates among ASEAN members, he said.
The senator said the failure to adjust tax brackets “led to rising tax burden among Filipinos.”
It resulted to workers paying a large portion of the tax burden to the government, he added.
Under his measure, individuals earning no more than P22,200 every year shall be imposed an income tax rate of five percent. At present, the Bureau of Internal Revenue imposes a tax rate of five percent for individuals who earn no more than P10,000 per year.
“The greater share in taxes of Filipino wage and salary earners is one of the reasons why there has been a demand to increase the workers’ wages or salaries,” Villanueva said, citing the recent Pulse Asia survey that listed “raising pay” as the most urgent concern among 46 percent of the surveyed Filipinos.
“Hindi sapat ang pagtataas ng kita ng ating manggagawa kung hindi natin irereporma ang ating sistema ng pagbubuwis. Panahon na po para ibalik sa ating taumbayan ang karamihan ng kanilang kinikita nang sa gayon ay mas mapalakas din natin ang kakayahan nilang gumastos para sa kanilang mga pangangailangan.”
The Villanueva bill proposes a tax of P1,100 plus 10 percent of the excesses of P22,200 for individuals earning over P22,200 but not more than P66,600 annually. Those who earn above P66,600 but not over P155,400 will be charged P5,550 plus 15 percent of the excess P66,600.
He also sought to tax annual compensation of P155,400 up to P310,800 with P18,870 plus 20 percent of the excess of P155,400. Those who earn more than P310,800 but not over P555,00 would be taxed P49,950 plus 25 percent of the excess of P310,800.
A P1,100,000 plus 30 percent of the excess P555,000 tax would be imposed on incomes over P555,000 but not over P1,100,000. Individuals with an annual income of P1,100,000 would be taxed P277,500 plus 32 percent of the excess over P1,100,000.
“Our country should not be left behind our richer ASEAN neighbours. What we need is a taxpayer-friendly system that would give more purchasing power to our workers,” Villanueva said./PN
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