Communications Sec. Sonny Coloma. INQUIRER FILE PHOTO
Malacañang on Wednesday clarified that President Benigno Aquino III supports proposals to lower personal income tax rates.
The statement came a day after Senator Francis “Chiz” Escudero urged Aquino to certify as urgent one of the proposed bills seeking to reduce income tax.
READ: Escudero urges Aquino to back bill lowering income tax rates
“Government is open to consider proposals on changing the income tax rates and continues to work with Congress on this matter,” Communications Secretary Herminio Coloma Jr. said during a Palace briefing.
He added that the Department of Finance (DOF) has been “advocating” a comprehensive review of the country’s taxation system.
However, he explained that new and additional sources of revenues will have to be identified to offset the losses from the reduced collection of income tax.
Quoting Secretary Cesar Purisima, he said, “the DOF prefers a holistic review of the tax structure so as not to put our fiscal gains and fiscal health at risk.”
Asked if Aquino will heed Escudero’s advice to certify as urgent bills lowering income tax, Coloma said he will have to check with the Presidential Legislative Liaison Office if such proposals are included in their list of 26 priority bills. Kristine Angeli Sabillo/JE