Sen. Bam Aquino. INQUIRER.NET/CATHY MIRANDA
Opposition Senator Bam Aquino on Wednesday vowed to block the removal of the 10-percent preferential tax rate for private non-profit schools, which he said would lead to higher tuition.
Aquino explained that at present, private non-profit proprietary educational institutions, together with non-profit hospitals, offshore banking units and regional operating headquarters, receive a preferential 10-percent income tax rate.
But under the proposed second tax reform package, these institutions, he said, may be taxed up to 25% — more than double their current rate – leaving them with less money to invest in quality education for their students.
“What’s more, this additional cost may result in higher tuition fees,” Aquino said in a statement.
Senate President Vicente “Tito “ Sotto III filed last week Senate Bill No. 1906 titled the “Corporate Income Tax and Incentives Reform Act.”
READ: Sotto files bill on TRAIN 2 covering corporate income taxes, incentives
“Sa dulo, ang mga pamilyang nagpapaaral din ang papasan nito kaya tataas ang matrikula,” Aquino said.
(In the end, families sending kids to school will bear the brunt of this measure with increased tuition.)
“Nalulunod na nga sa taas presyo ng bilihin, tataas pa ang gastos sa eskuwela. Maawa naman po kayo sa ating mga kababayan. Dagdag na pahirap na naman ito sa pamilyang Pilipino,” he added.
(Already drowning from soaring prices of goods, even school expenses would have to increase. Have pity on our fellowmen. This is added burden to Filipino families.)
Instead of working on this second tax reform package, Aquino appealed to Congress to address the gaps in the Tax Reform for Acceleration and Inclusion (TRAIN) Law by passing the “Bawas Presyo Bill.”
The Bawas Presyo bill, he said, seeks to suspend the excise tax on fuel under the TRAIN Law when the average inflation rate surpasses the annual inflation target over a three-month period.
Aquino was one of four senators who voted against the ratification of the TRAIN Law. /kga