Tax Reform

Bam eyes tax exemption for communities affected by calamities

Business establishments and communities affected by calamities will be exempted from paying taxes once a measure submitted by Sen. Bam Aquino becomes a law.

 “This measure seeks to relieve Filipinos of some taxes to encourage recovery after disaster,” said Sen. Bam as he filed Senate Bill No. 653 or “An Act Providing for Tax Relief in Times of Calamity”.

 The measure mandates real property tax exemption for affected communities after a declaration of a state of calamity.

 In addition, Sen. Bam said business establishments affected by a calamity shall be exempted from income tax payments.

 The bill also provides donor’s tax exemption to organizations, provided that at least 90 percent of the donations go directly to the affected community and not to administrative purposes.

 “Families affected by calamities need our help. Waiving taxes is one way the government can give them support and assistance,” Sen. Bam stressed.

 A total of 6 provinces, 12 cities, 17 municipalities, and 2 barangays have been declared under a state of calamity because of El Niño from February 2015 to March 14, 2016 according to the National Disaster Risk Reduction and Management Council.

Spare the Poor, Pass the MIE Bill – Sen. Bam

Spare the poor.

Senator Bam Aquino made this pronouncement as he called for the swift passage of the Marginal Income Earners (MIE) bill, saying ‘it could be another landmark bill of this administration which is pro-poor and pro-business.’

 During the Senate Ways and Means committee hearing on the MIE bill, Aquino stressed the measure doesn’t affect the government’s revenue-collection efforts and, at the same time, eases the burden of millions of Filipinos.

“I’m hoping that we can move this forward,” said Aquino, adding that the Senate has already reached out to its House counterpart to look into the MIE Bill.

Aquino filed Senate Bill 2227 which seeks to exempt MIEs such as farmers, fishermen, tricycle drivers, small sari-sari storeowners and other micro-entrepreneurs, from paying income tax

 Under Senate Bill 2227, Aquino said MIEs, or self-employed individuals who earn not more than the minimum wage equivalent in their regions, should be spared from paying income tax, just like minimum wage earners.

“The MIE bill basically exempts marginal income earners at the same level as the minimum wage earners,” said Aquino.

Aquino filed the bill after the Bureau of Internal Revenue released a memorandum circular — Revenue Memorandum Circular (RMC) No. 7-2014 — compelling micro entrepreneurs to pay income tax returns.

According to BIR’s circular, MIEs include agricultural growers/producers such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or “turo-turos,” and drivers/operators of a single unit tricycle.

 “Charging taxes does not help them in any way. Rather, it becomes a burden to a sector that is situated below the poverty line,” Aquino said.

 “Imposing income tax on our micro businessmen is tantamount to confiscating what little income they are able to make on a daily basis,” he added.

“This measure is just and fair and follows the constitutional provision of equal protection to all Filipinos.”

 

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