8/12/2019 march26.2014 cHouse Committee on Ways & Means drafting bill on lower income tax rates

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House Committee on Ways & Means drafting bill

on lower income tax rates

The House Committee on Ways and Means is currently drafting a bill on the reduction of income

taxes for both individuals and corporations.

Rep. Romero “Miro” uimbo !"nd  #istrict$ Mari%ina City&$ committee chairman$ said the

committee has been 'or%ing 'ith the (ational Tax Research Center !(TRC& in crafting the bill$ and its

filing 'ill be done in coordination 'ith )en. *uan +dgardo ,ngara$ chairman of the )enate Committee on

Ways and Means.

“We-ve been 'or%ing on this the last three 'ee%s 'ith the (TRC. This bill 'ill be the mother billto be ta%en up. t is being filed in coordination 'ith the chair of the )enate-s committee on 'ays and

means$ )en. )onny ,ngara$” said uimbo.

He said the Technical Wor%ing /roup !TW/& of the House committee on 'ays and means is still

finali0ing the appropriate rates for the income tax reduction.

uimbo said the ob1ective in 'or%ing for the reduction of income tax rates is in line 'ith the

inclusive gro'th agenda of 2resident ,3uino.

“The ob1ective is to carry out the 2resident4s vision to have a gro'th that4s inclusive$” said

uimbo.

n his fourth )tate of the (ation ,ddress !)5(,& last year$ 2resident ,3uino highlighted   the

government-s commitment to attain inclusive gro'th for the 6ilipinos by creating more economic

opportunities for them. “5ur strategy is to maximi0e opportunities for all$ especially for those most in

need. What 'e call inclusive gro'th is the principle that drives every initiative$ every action and every

decision of your government$” the 2resident said.

T'o bills have so far been filed at the House see%ing to cut income tax rates. 7ast March 89$ Rep.

Magtanggol /unigundo !"nd #istrict$ :alen0uela City& filed House ;ill <9== see%ing to lo'er individual

and corporate income tax rates to 8> percent from the current ?" percent and ?9 percent$ respectively.

Mean'hile$ Rep. )alvacion 2once +nrile !8st #istrict$ Cagayan& last year filed House ;ill "89

see%ing to reduce income tax rates of individuals 'ith taxable income amounting to 289$999 to over 28"

million.

2once +nrile said her bill intends to 1umpstart the economy by empo'ering the consumer 'ith

more purchasing po'er 'hich can be done by increasing their ta%e home pay through lo'er tax rates and

hence$ lo'er deductions from their income.

Mean'hile at the )enate$ ,ngara filed last 6ebruary "@ )enate ;ill (o. "8<= see%ing to ad1ust

individual income tax brac%ets and lo'er the rates on individual income tax starting *anuary "98>. t

see%s to lo'er tax rates to 89 percent from 8> percent for those earning bet'een 2"9$999 to 2@9$999 and

to "> percent from the current ?" percent for those earning over 28 million.

NR # 3417C

MARCH 26, 2014

8/12/2019 march26.2014 cHouse Committee on Ways & Means drafting bill on lower income tax rates

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/unigundo$ a #eputy Ma1ority 7eader$ said his proposal$ if enacted into la'$ 'ould definitely

reduce the number of 6ilipinos 'ho do not pay taxes. “7o'er taxes mean higher level of compliance. The

advantages of having 8> percent income tax rates are enormous$” he said.

6or one$ /unigundo said lo'er income rates 'ill stimulate the economy by providing individual

taxpayers more after tax income or disposable income 'hich they can either save or spend in the

engagement of services or purchase of goods that they are sub1ect to :alueA,dded Tax !:,T&.

)econdly$ he said that 'ith the expected increase in sales$ an intended conse3uence 'ould be the

creation of more 1obs by corporations to meet the increase in demand due to the enhanced purchasing

 po'er of consumers.

Thirdly$ he said around <9 percent of 2hilippine /ross #omestic 2roduct !/#2& come from the

informal economy$ 'hich do not pay taxes.

7astly$ he said the bill intends to plug revenue loopholes that have been exploited by taxpayers in

consonance 'ith unscrupulous ;R officials.

With the impending integration of "98> ,)+,($ /unigundo said the tax rates of the 2hilippines

must be competitive enough to attract more foreign direct investments that 'ill generate 1obs to 'ipe out

unemployment in the country.

/unigundo-s House ;ill <9== see%s the amendment of )ection "<, !"& of the (ational nternal

Revenue Code !(RC&$ as amended. t provides that for Rates of Tax on Taxable ncome of ndividuals$

the tax shall be computed in accordance 'ith and at the rates established in the follo'ing scheduleB

Net Taxable Income Tax Due

 (ot over 2?9$999 +xempt

2?9$999 and above but not over 28?9$999 28$>99 >D of the excess over 2?9$99928?9$999 and above but not over 2"E9$999 2F$>99 89D of the excess over 28?9$999

2"E9$999 and above but not over 2<?9$999 2"8$>99 8>D of the excess over 2"E9$999

2<?9$999 and above but not over 2>E9$999 2<<$999 "9D of the excess over 2<?9$999

2>E9$999 and above but not over 2@?9$999 2@<$999 ">D of the excess over 2>E9$999

5ver 2@?9$999 288>$>99 ?9D of the excess over 2@?9$999

!?9& rbb