Marcos joins tax reform chorus

Senator Bongbong Marcos. INQUIRER FILE PHOTO

Senator Ferdinand “Bongbong” R. Marcos Jr. on Saturday joined other lawmakers in urging Malacañang to certify the proposed income tax reform measure as urgent.

“If Malacañang is really sincere in its promise of development for everyone, it should certify the bill as urgent,” Marcos said in a statement.

Marcos noted that time was running out for Congress to approve the measure as the Senate is set to tackle the proposed 2016 national budget in the few remaining session days of the year, leaving the legislature with just a short period next year to tackle other important bills.

The senator earlier backed calls to amend the existing tax brackets but these were repeatedly rejected by Malacañang.

Under the National Internal Revenue Code of 1997, individuals with taxable income of over P500,000 are taxed a fixed amount of P125,000 plus 32 percent of the excess over P500,000.

“Our tax structure is simply outdated that even those in the middle class are now in the bracket of the rich, paying the tax for the rich. It’s time we do something to correct the situation,” Marcos said.

He cited a study by Ibon Foundation, which estimates that around five to six million Filipinos and their families are being doubly burdened by higher taxes and inflation.

Based on data of the Bangko Sentral ng Pilipinas, prices of goods and services more than doubled or increased by 110 percent between 1997 and 2012 but individual income tax brackets remained unchanged since 1997.

On the other hand, the senator cited reports saying the latest Family Income and Expenditure Survey showed that the income of the lowest-earning 70 percent of Filipinos had grown 137 percent between 1992 and 2012 and, as a result, many of low and middle income families now have to pay higher taxes.