Duterte rejects lower income tax rates

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Davao City: Just like President Benigno Aquino 3rd, Davao City Mayor Rodrigo Duterte is not in favor of lowering income tax rates.

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Duterte, who officially joined the presidential race on Friday, said he is against proposals to lower income taxes because it would deprive government of the needed funds for vital infrastructure projects.

“No [I am not in favor]. I need money for my [government]programs…to create jobs, invest in infrastructure. You need money to run this country,” Duterte told reporters.

The Finance department estimates that the government will lose P29 billion in revenues if income tax rates are adjusted.

Duterte noted that economic growth has yet to be felt outside Metro Manila because development is limited to the capital.

“To boost our economy, we have to move the goods at a low cost at the shortest possible time. For one, we have to decongest Metro Manila. As it is, I cannot solve the problem of Metro Manila because it is overloaded with people, vehicles and factories,” the mayor said.

Duterte however said he is in favor of continuing the Conditional Cash Transfer (CCT) program if he is elected president.

The CCT or Pantawid Pamilyang Pilipino program provides cash grants by as much as P4,000 monthly to poor families provided that children attend school, get regular health check-ups and vaccinations; undergo deworming sessions every six months; and their parents attend responsible parenthood sessions.

Under the proposed 2016 budget, the CCT has a P62 billion allocation covering 4.6 million poorest of the poor households. The program is being implemented by the Department of Social Welfare and Development.

“These people depend on that (CCT). Tanggalin mo, wala na ngang trabaho (You remove that, they don’t even have jobs),” Duterte said.

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14 Comments

  1. What Duterte should do if he becomes president is NOT to reject outright the lowering of taxes. Whatever percentage in tax is lowered for the low and middle low income group should be offset by increasing proportionately the taxes of the upper middle and uppermost income group, the milliinaires and billionaires of our country. In this way the govt will not lose so much tax money for its projects.

  2. He is not consistent of what he is saying. He is always out of his mind.. Paano mo iboboto itong ganitong Presidente?? Nakalimutan na niya ang kanyang mga naipangako nuong una…my gully…May amnesia ba siya….//
    This is not the president what we need…to run our country.. He has no solution for the problems of our country…
    GOD SAVE PHILIPPINES FROM THIS KIND OF PEOPLE…

    • He is not lowering the tax rate but he is for tax exemption for people earning P25thousand and lower per month. What he is not agreeable is to lower the RATE. PLEASE TAKE NOTE.

  3. Sa halip nga naman na babaan pa an tax, ipatupad ang collection capability at audit investgation sa mga income tax filers. Maraming paraan ang dapat gawin para tumaas ang tax collection at hindi sa pamamaraan na pababain ang tax rates.

  4. But how come last June when Duterte spoke with the taxi association in Paranaque, he clearly said this: Pag ako naupong presidente ang una kong pepirmhan lahat ng kumikita ng 25,000 pesos pagbaba, wala ng tax yan, sa inyo lahat yan.

    • misquoted or amnesia? take your pick. seriously the allotment for cctp , if removed, would more than offset the projected loss from a reduction in the said income taxes. at yun salary ng gov’t employees ay mababalewale kasi tataas ang tax bracket ng mga empleyadong nasa mas mataas na grade level like the teachers, policemen,soldiers etc.duterte’s economic team must be creative to accomodate the varied interests that make up philippine society. political will is the key!

    • Perhaps he’ll provide for tax exemptions. As it is, an individual earning 25,000 or less can claim for a personal exemption of 50,000 and additional exemption of up to 100,000 or up to four (4) qualified dependents at 25,000 each. Add to that, the threshold for non-taxable benefits has been raised to 82,000 from the previous 30,000. Or perhaps certain classes of taxpayers may be provided with exemption such as that from withholding taxes on wages or certain exempted thresholds for those income subjected to final taxes. Clearly, this would largely benefit individual taxpayers who don’t earn that much. And there is this doctrine in tax which makes it a necessity for any government to tax its people, the lifeblood doctrine. If lower tax rates will be implemented, and given the inefficiency in tax levy and collection, the government will have less spending power and may encounter more deficits. The government can improve collection, but as it is, lowering tax rates only adds to the deficit. Point is, granting exemptions to certain classes of taxpayers doesn’t necessarily mean lowering income tax rates.

    • common sense naman sa 25,000 earners talaga naman na dapat lang exempt sa income tax at hindi yan ang tinutukoy ni mayor.

    • Gusto ko iyan as not fixed earner dapat lang talaga lower ang taxes, it is hard the obligation of payments…just be honest how they distributed the money from tax. Well it is good to hear the good news for having the supersonic fighter Jets from South Korea as our defense to China if ever they would attack us. We can see the good point where tax goes..

    • Now Duterte is a candidate for presidency, it looks what he says before are now the opposite. It looks he is balimbing. Can we trust a president who is balimbing?

    • HIndi siya pabago bago wala siyang sinabi nuon about rate ng income tax. Ang sinabi niya nuon ay tungkol sa mga kumikita lamang ng P25thousand lamang o mas mababa pa kada buwan ang HINDI ita-tax. Ngayon naman itong bagon usapin na ito ay about sa RATE NG INCOME TAX. Malaki ang pagkakaiba. Please take note .