Rep. Lawrence Lemuel Fortun of the First District of Agusan del Norte has co-authored a house bill to lower income tax burdened by Filipinos.
The bill takes cognizance of the long overdue reforms of the National Internal Revenue Code (NIRC) adopted in 1997, or 18 years passed.
As income of salaried individuals is increased to keep it at par with the rising inflation, “they are pushed into higher income brackets, and, thus, are compelled to pay more taxes that they should”, the
explanatory note of the bill reads.
The said legislative measure to cut income tax stemmed from House Bill 4829 authored in the lower house by Rep. Miro Quimbo and was co-authored by Reps. Fortun, Villar, Abayon, Del Rosario (A.G.),
Zamora (M.), Javier, Belmonte (J.), Chipeco, Primicias- Agabas, and Lanete. The Philippine Daily Inquirer reported that “the tax reform, the first in two decades, would provide more disposable income for wage earners and corporations but reduce the government’s revenue collections”.
“The income tax reform bill pending in both chambers of Congress proposes to raise the tax exemption ceiling to P150,000 a year and lower the income tax rate currently pegged at 32 percent.”
“The bill would also raise from P500,000 to P10 million the trigger for the higher income tax rate and reduce the corporate tax rate from 32 percent to 25 percent.”
As the Congress reopens, Fortun expressed his high hopes for the timely passage of the bill before the end of Pres. Aquino’s administration. pr