The Department of Finance (DOF) has supposedly shown little interest in redu-cing the income tax rates of individuals by making those who earn more pay more, Rep. Roman Romulo of Pasig City (Metro Manila), an author of a measure seeking the reduction, told the weekly Ugnayan sa Batasan News Forum on Tuesday.
The proposed measure adjusts the tax brackets of seven groups relative to inflation, simplifies the tax structure to increase compliance and broaden the tax base: monthly earners of P24,647 and below (Bracket 1); P24,647 to P73,942 (Bracket 2); P73,942 to P172,532 (Bracket 3); P172,532 to P345,063 (Bracket 4); P345,063 to P616,184 (Bracket 5); P616,184 to P1,232,369 (Bracket 6) and P1,232,369 and beyond (Bracket 7).
This means that a teacher, for example, will only have to pay taxes amounting to P9,149.80 a year as against the current P31,446.
“They [Finance officials] are not interested. They do not attend the hearings or they repeatedly claim that they are still studying the loss of revenues. But if we look at the transcripts of the meetings, they already admitted that the existing tax rates are not appropriate with the ever increasing inflation rate,” Romulo said.