Good news for Filipino workers burdened by high taxes!
Filipinos burdened by high taxes can heave a sigh of relief once a bill filed by Senator Bam Aquino seeking to review and reform current tax system is enacted into law.
In explaining Senate Bill No. 1942, Aquino said there’s an urgent need to revise the current tax bracket set by the National Internal Revenue Code, which was passed in 1997.
“Now is the time to get this updated and be attuned to the present time,” Aquino stressed. “We cannot continue using outdated tax brackets and a threshold which were approved fifteen years ago.”
“The salary of a management level employee fifteen years ago will probably be equivalent to the salary of an entry level call center agent today because of inflation and other economic factors,” he added.
Under Aquino’s bill, Section 24 of the National Internal Revenue Code of 1997 will be amended by adjusting the levels of net taxable income and simplifying the nominal tax rates in computing individual income tax, based on current prices.
“The Tax Reform Act effectively lowers the taxes on the Filipino working class, allowing them to enjoy a higher net income and increasing their purchasing power,” Aquino said.
The senator also assured that the bill would not impose a burden on the micro, small, and medium enterprises (MSMEs) that comprise a majority of employers in the Philippines.
With a just tax system, Aquino believes that it will encourage citizens to declare their true income and pay their taxes.
“It also supports the government’s push for inclusive growth while ensuring that government is still able to raise funds for social programs that directly benefit the poor,” Aquino said. “It is a win-win solution that offers the greatest benefit to the greatest number of Filipinos.”
Aquino added that the bill also adjusts the tax level of the upper one percent (1%) of taxpayers, making sure that the government is able to collect a larger share of income from those who can afford to pay more.