Senator Juan Edgardo “Sonny” Angara. PRIB/ROMEO BUGANTE
Senator Juan Edgardo “Sonny” Angara on Tuesday said that workers may expect the lower income tax by April 2018.
When asked about the matter, Angara said: “Hopefully when they file for their income tax in April 2018,” in an interview with INQ&A.
The tax reform package proposed by the current administration aims to lower the income taxes of workers while raising the consumption taxes.
The proposal is that those earning up to P250,000 a year will be imposed an income tax of P2,500.
READ: Lower income tax rate seen passed by January 2017
Angara, who also heads the Senate ways and means committee, said that those earning below P250,000 annually, or P20,000 below a month may be tax-exempt. They will still have to consolidate or make amendments.
The senator said that there are two objectives of the proposal—to have a more just and progressive tax system and to raise revenue for the government.
“It’s been 20 years since we reform the income taxes. Mababa sahod mo, pero mataas tax mo kasi wala pa siyang (Your income is low, but your tax is high because it has yet to have) adjustment mechanism since 1997,” Angara said.
He added that they are also looking at raising the revenue for the government and that they would still have to study the proposal carefully to see how the burden will affect ordinary people.
“I think they saw the opportunity that we have a highly unequal society—there’s an opportunity to build the middle class but there’s also an opportunity to get money to invest for the poor, in terms of social services, ayun ang nakita nila (that’s what they saw),” he said.
He said that it is best not to rush the passage of tax reform package and that everybody should be consulted first.
“That’s something we have to get the balance,” Angara said. RAM