Deputy Speaker Sharon Garin pushed for the restructuring of income taxes that will lower the tax rates of salaried individuals as well as corporations.
Garin, who represents AAMBIS-Owa party-list, authored House Bill 3360, which is now pending with the Committee on Ways and Means.
Under the bill, Filipinos whose income is P21,613 will be taxed five percent, those getting between P21,613 and P64,839 will be subject to P1,080 tax plus 10 percent of the excess over P21,613, those with income of P64,839 to P151,290 will be taxed P5,402 plus 15 percent of the excess over P64,839.
The measure also seeks to lower corporate income tax from 35 percent to 25 percent.
“It is high time for the government to address the built-in inequity of the personal and corporate income tax system. Maintaining the status quo is no longer acceptable for the working sector which has endured the impact of inflation through the years,” Garin said.
“Once implemented, the lower rates will mostly benefit the low and middle-income earners,” she added.
She added that the country’s personal income tax rates are the highest among members of the Association of Southeast Asian Nations. A study presented by the Tax Management Association of the Philippines (TMAP) showed that a Filipino earning P500,000 annually is taxed at 32 percent. Tax rates for the same income are 20 percent in Vietnam and Cambodia, 12 percent in Laos, 11 percent in Malaysia, 10 percent in Thailand and two percent in Singapore. Brunei does not impose a tax on the same amount.