Poe backs income tax cut to 25%
Presidential candidate Senator Grace Poe. FILE PHOTO
MANILA — Presidential candidate and Senator Grace Poe wants an immediate reduction of income tax to 25 percent, for both corporate and individual taxpayers, if she gets elected as president, according to the Tax Management Association of the Philippines (TMAP).
TMAP president Benedict R. Tugonon said in a briefing on Wednesday, that Poe was the only presidential candidate, as of press time, who had answered the group’s 24-item questionnaire.
“The others are probably very busy in their campaign,” Tugonon said. “But we are expecting their answers very soon.”
The tax lawyer said that, based on the candidates’ discussions in other forums, all of them have expressed openness to taking on comprehensive tax reforms.
“We take that as good news,” Tugonon said.
Poe has informed the TMAP that she will issue — if she was sworn in as President — an executive order that will create a Tax Reform Commission, which will draft a comprehensive tax reform program.
“It will be part of my First 100 Days agenda,” Poe said, adding that reforming that tax system should not be done piece-meal.
“It should be holistic and comprehensive to avoid inconsistencies,” she said. “For every revenue-eroding measure, there should be a compensating measure to maintain fiscal stability.”
Asked about her plans related to the income tax, Poe said the corporate rate would be immediately reduced to 25 percent while the highest effective income tax rate on individuals would be reduced to 25 percent as well.
According to Tugonon, Poe’s camp is looking at the excise tax — raising existing ones or expanding the list of products and services liable to it — to counter a decrease in income tax collection.
“We shall introduce excise taxes on sugar-sweetened beverages and non-essential beauty products/services to increase revenues which can be allotted to health spending,” Poe said.
This was her answer to the question “Would you consider increasing excise tax on alcohol products, luxury or high-end automobiles, and other non-essential goods to increase tax collection?”
Sen. Ferdinand “Bongbong” Marcos Jr. INQUIRER FILE PHOTO / NIÑO JESUS ORBETA
Among the candidates for vice president, only Sen. Ferdinand “Bongbong” Marcos Jr. has answered the TMAP questionnaire.
Answering the same question on excise tax, Marcos said “No.” He did not elaborate.
On the question of whether he agreed to a system that would lessen the burden on wage earners while exacting more from corporate and high-income taxpayers, Marcos said “Yes.”
“Wage earners need more tax relief than higher income earners,” he said. “But the government should focus on improving its tax collections rather than increasing tax imposition.”
Earlier this month, TMAP issued the tax policy survey for the candidates for President, Vice-president, Senate and Lower House seats.
The returned filled-up survey forms are posted at the TMAP website (www.tmap.org.ph). SFM
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