Speaker Feliciano “Sonny” Belmonte Jr. has said he supports bills seeking to lower the personal income tax of ordinary workers in a bid to increase their personal pay.
In an interview Wednesday night, Belmonte said it is high time to readjust the tax on income of workers.
He said while the value of money is going down, the income tax rates remain fixed.
“The value of money is going down pero ‘yung mga (but the) rates not only of income tax haven’t been resolved in a long time. So on that principle, yes, readjust them with the values that they had,” Belmonte said.
In a statement, House ways and means chair Marikina Representative Romero “Miro” Quimbo has urged the Congress leadership to tackle the bill lowering income tax in the Legislative-Executive Development Advisory Council (LEDAC).
Quimbo appealed to Belmonte and Senate President Franklin Drilon to discuss with President Benigno Aquino III the income tax reform bill.
READ: Angara urges Palace, Congress to expedite income tax reform
“It is clear that the Senate, House, and the President all aim for the lowering of income taxes. But for a substantial headway to materialize, we need to sit down, agree on the principles, and come up with a measure amenable to all parties.” Quimbo said.
Malacañang has said it is open to Congress’ move to reform the income tax system.
READ: PH gov’t open to lower income tax rates but wants ‘holistic’ review
Speaker Feliciano Belmonte Jr. has said he supports bills seeking to lower the personal income tax of ordinary workers in a bid to increase their personal pay.
In an interview, Belmonte said it is high time to readjust the tax on income of workers.
He said while the value of money is going down, the income tax rates remain fixed.
“The value of money is going down pero yung mga rates not only of income tax haven’t been resolved in a long time. So on that principle, yes, readjust them with the values that they had,” Belmonte said.
In a statement, House ways and means chair Marikina Rep. Romero Quimbo has urged the Congress leadership to tackle the bill lowering income tax in the Legislative-Executive Development Advisory Council (LEDAC).
Quimbo appealed to Belmonte and Senate President Franklin Drilon to discuss with President Benigno Aquino III the income tax reform bill.
“It is clear that the Senate, House, and the President all aim for the lowering of income taxes. But for a substantial headway to materialize, we need to sit down, agree on the principles, and come up with a measure amenable to all parties.” Quimbo said.
Malacanang has said it is open to Congress’ move to reform the income tax system.
The present tax code sets a 32 percent rate for individuals with an annual taxable income of more than P500,000.
Quimbo said his version, House Bill No. 4829, proposes a flat rate of 25 percent income tax on self-employed individuals and professionals, and a five percent minimum income tax rate on self-employed individuals and professionals.
His bill also reduces the corporate income tax (CIT) rate from 30 percent to 25 percent and increases the minimum corporate income tax (MCIT) rate from two percent to five percent.
Quimbo said the levels of taxable income brackets and the corresponding base amount of tax for compensation income earners will be adjusted based on Consumer Price Index (CPI).
The bill also seeks a five percent income tax on individuals earning not over P20,000, and a 30 percent income tax on those earning over P500,000 but not over P1 million.
Currently, an individual earning P10,000 or less pays a five percent tax, while those earning more than P500,000 pays 32 percent tax.
Meanwhile, Bayan Muna Rep. Neri Colmenares and Carlos Zarate filed a similar bill House Bill 5401 which seeks to exempt low income families earning P396,000 from paying taxes.
Their bill also seeks to simplify further the income tax bracket by adjusting the highest tax base from P500,000 to P2,700,000 to reflect adjustments in the Consumer Price Index.
It also seeks an automatic adjustment or indexation mechanism every three years.
The legislature is eyeing to lower income tax rate just after Aquino signed the law increasing the tax exemption cap on bonuses to P82,000 from P30,000.
In pushing for income tax reform, Quimbo had warned of a “bracket creep” phenomenon wherein workers’ salaries increase according to inflation while tax brackets remain unadjusted since 1997, when the tax code was passed.
He said at least 16 percent of total individual income earners pay for 85 percent of total individual income tax collection in 2013.
Meanwhile, 72 percent of all income taxes are paid by the middle class while the highest income earners shoulder a smaller portion of tax payments, Quimbo added.
The present tax code sets a 32 percent rate for individuals with an annual taxable income of more than P500,000.
Quimbo said his version, House Bill No. 4829, proposes a flat rate of 25 percent income tax on self-employed individuals and professionals, and a five percent minimum income tax rate on self-employed individuals and professionals.
His bill also reduces the corporate income tax (CIT) rate from 30 percent to 25 percent and increases the minimum corporate income tax (MCIT) rate from two percent to five percent.
Quimbo said the levels of taxable income brackets and the corresponding base amount of tax for compensation income earners will be adjusted based on Consumer Price Index (CPI).
The bill also seeks a five percent income tax on individuals earning not over P20,000, and a 30 percent income tax on those earning over P500,000 but not over P1 million.
Currently, an individual earning P10,000 or less pays a five percent tax, while those earning more than P500,000 pays 32 percent tax.
Meanwhile, Bayan Muna Rep. Neri Colmenares and Carlos Zarate filed a similar legislation, the House Bill 5401, which seeks to exempt low income families earning P396,000 from paying taxes.
Their bill also seeks to simplify further the income tax bracket by adjusting the highest tax base from P500,000 to P2,700,000 to reflect adjustments in the Consumer Price Index.
It also seeks an automatic adjustment or indexation mechanism every three years.
The legislature is eyeing to lower income tax rate just after President Benigno Aquino III signed the law increasing the tax exemption cap on bonuses to P82,000 from P30,000.
In pushing for income tax reform, Quimbo had warned of a “bracket creep” phenomenon wherein workers’ salaries increase according to inflation while tax brackets remain unadjusted since 1997, when the tax code was passed.
He said at least 16 percent of total individual income earners pay for 85 percent of total individual income tax collection in 2013.
Meanwhile, 72 percent of all income taxes are paid by the middle class while the highest income earners shoulder a smaller portion of tax payments, Quimbo added. Marc Jayson Cayabyab/IDL