MANILA, Philippines - The talk with regard to a possible tax reform in the country has been going on for decades - transcending multiple administrations. However, up until now, there is still no concrete plan that is being implemented which is something that the Duterte administration wants to address.
In a revised proposal that went public over the weekend, Filipino workers who have a monthly income of P21,000 or below will no longer be mandated to pay the obligatory personal income tax. This means that workers who fall under this category will automatically have P21,000 savings by the end of the year.
The suggested plan is part of the Comprehensive Tax Reform Plan (CTRP) Package One under House Bill (HB) 4774 reform concocted via a close collaboration between the House’s ways and means committee and the Department of Finance (DoF). The framework of the proposal has already been discussed even before the House went on hiatus for the Lenten season where both parties agreed to have the changes under one package as filed by Quirino Representative Dakila Cua.
"Under the tax reform plan, his take-home pay will effectively increase by P21,867 annually because he would no longer have to pay this amount of income tax under the current system," Finance Undersecretary Karl Kendrick Chua explained in a statement sent to various media outlets.
"The simplified tax system will increase the take-home pay of most individuals, putting more money in people's pockets, which they can use to save for the future or spend on their families' needs, such as for tuition or school expenses of their children," he added.
The bill, however, reinstates the initially proposed immunity on the first P82,000 of earnings coming from other bonuses including the 13th-month pay that workers may receive in a year’s duration.
This news has been received with positive feedback from a lot of Filipino workers, especially from fresh grads and young laborers who are just on the brink of building their professional careers. Minimum wage earners will also benefit a lot from the proposal shall it eventually see the light of day and get implemented.
It is no secret that many have attempted to revamp the country’s tax system but significant change that can impact the society is still very scant. Given this, Chua reassures that concerned agencies are relentless in finding a better tax system that will benefit the masses without jeopardizing government budget.
"This tax policy reform under the bill is among the measures we are supporting to make the country's tax system simpler, fairer, and more equitable, especially for the poor and low-income Filipinos," Chua furthered.
--Ana Dumaraog, The Summit Express
In a revised proposal that went public over the weekend, Filipino workers who have a monthly income of P21,000 or below will no longer be mandated to pay the obligatory personal income tax. This means that workers who fall under this category will automatically have P21,000 savings by the end of the year.
The suggested plan is part of the Comprehensive Tax Reform Plan (CTRP) Package One under House Bill (HB) 4774 reform concocted via a close collaboration between the House’s ways and means committee and the Department of Finance (DoF). The framework of the proposal has already been discussed even before the House went on hiatus for the Lenten season where both parties agreed to have the changes under one package as filed by Quirino Representative Dakila Cua.
"Under the tax reform plan, his take-home pay will effectively increase by P21,867 annually because he would no longer have to pay this amount of income tax under the current system," Finance Undersecretary Karl Kendrick Chua explained in a statement sent to various media outlets.
"The simplified tax system will increase the take-home pay of most individuals, putting more money in people's pockets, which they can use to save for the future or spend on their families' needs, such as for tuition or school expenses of their children," he added.
The bill, however, reinstates the initially proposed immunity on the first P82,000 of earnings coming from other bonuses including the 13th-month pay that workers may receive in a year’s duration.
This news has been received with positive feedback from a lot of Filipino workers, especially from fresh grads and young laborers who are just on the brink of building their professional careers. Minimum wage earners will also benefit a lot from the proposal shall it eventually see the light of day and get implemented.
It is no secret that many have attempted to revamp the country’s tax system but significant change that can impact the society is still very scant. Given this, Chua reassures that concerned agencies are relentless in finding a better tax system that will benefit the masses without jeopardizing government budget.
"This tax policy reform under the bill is among the measures we are supporting to make the country's tax system simpler, fairer, and more equitable, especially for the poor and low-income Filipinos," Chua furthered.
--Ana Dumaraog, The Summit Express
