New income tax system proposed

If enacted into law, over four million Filipinos classified as low-income earners will be exempted from the new income tax system proposed by the Department of Finance.

In the “Insights on President Duterte’s Tax Reform Agenda” forum hosted by the Senate Tax Study and Research Office in the Senate and attended by officials from the Senate, DoF, and the academe, DoF Undersecretary Karl Kendrick Chua said that around 4.6 million taxpayers with income of P250,000 and below would not be subjected to income taxes if the new income tax system will be passed into law.

“A simpler, fairer, and more efficient tax system can promote investment, job creation, and poverty reduction. It will also fund government projects in infrastructure, education, health, and social protection,” Chua said.

Chua said that the proposed income tax system comes in light of the high level of support the Duterte administration has committed for comprehensive tax reforms – which have often encountered complications in previous administrations.

He said the proposed tax policy reform program which aims to lower the tax rates and increase the base of taxpayers is included in President Duterte’s 10-point socio-economic agenda.

Sen. Juan Edgardo “Sonny” Angara, who attended the event, said he strongly supports the proposed tax reforms, noting that “the last ambitious tax reform program was undertaken several governments, several administrations ago.” (Mario B. Casayuran)