Solon wants tax credit for middle-income earners during pandemic
MANILA, Philippines — A lawmaker on Tuesday asked the government to grant tax credit to middle income earners during the coronavirus disease 2019 (COVID-19) pandemic.
ACT CIS party-list Representative Niña Taduran said the tax credit could be be equivalent to the amount received by low-income families under the social amelioration program since middle-income families are also forced to spend more amid the pandemic.
“A lot of middle income families have also been badly hit by the slowdown in the economy and the work stoppage. They could be small businessmen or employed but their companies couldn’t sustain their operations,” Taduran said in a statement.
“Having to pay ₱5, 000 to ₱8, 000 less in taxes means ₱5, 000 to ₱8, 000 more that they can use for their personal needs,” the lawmaker added.
Taduran said that while the move may initially result to a loss of income for the government, the added purchasing power to the families can also help stimulate the country’s economy.
“Furthermore, this will not require additional budgetary expense on the part of the government,” the lawmaker said.
Cavite Governor Jonvic Remulla has also called on President Rodrigo Duterte to include the middle class in the government’s social amelioration program.
In a message addressed to Duterte, Remulla said the ongoing health crisis “is a time of crisis for everyone” and “not just the poorest of the poor, but also those who have built much but not enough.”
Section 4 (c) of Republic Act No. 11469 or the Bayanihan to Heal as One Act tackles the provision of an emergency subsidy for around 18 million low income households in the country affected by the health crisis.
The subsidy amounts from P5,000 to P8,000 a month for two months and is computed based on the “prevailing regional minimum wage rates.”
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