About this iReport
  • Not verified by CNN

  • Click to view omeroscar's profile
    Posted May 31, 2014 by

    More from omeroscar

    Income tax rate of Filipinos lowered again

    A THIRD bill seeking to reduce the income tax rate of individuals to 15 percent from the current 32 percent has been filed at the House of Representatives.
    Rep. Rodrigo Abellanosa of Cebu City on Saturday said House Bill 4372 is seeking the income tax rate reduction, saying his proposal to lower taxes at unchanged salary levels will translate to higher "take home" pays for income earners which would help workers cope with the higher costs of living and make local employment more attractive.
    "Higher take home pays for income earners will ease some of the burden from our people and diminish the need to look for employment outside the country," Abellanosa said.
    The neophyte lawmaker said for many years, the country has been experiencing the migration of skilled labor looking for better-paying employment abroad.
    "As movements to increase salary levels have shown to be minimally productive because of the opposition primarily of the private sector, it is necessary that the government seeks other ways of making our countrymen's lives easier, thus making local employment more attractive," said Abellanosa.
    House Bill 4372, now pending at the committee on ways and means chaired by Rep. Miro Quimbo of Marikina City, seeks to amend further Section 24 (A) (2) of the National Internal Revenue Code of 1997, as amended, thereby reducing income tax rates.
    Last March, Rep. Magtanggol Gunigundo of Valenzuela City filed House Bill 4099, seeking to lower individual and corporate income tax rates to 15 percent from the current 32 percent and 30 percent, respectively.
    The proposal, if enacted into law, will definitely reduce the number of Filipinos who do not pay taxes as lower taxes mean higher level of compliance.
    Gunigundo said the advantages of having 15 percent income tax rates are enormous, among them it will stimulate the economy by providing individual taxpayers more after tax income or disposable income which they can either save or spend in the engagement of services or purchase of goods that they are subject to Value-Added Tax (VAT).
    Then last April, Rep. Angelina Tan of Quezon Province filed HB 4278, seeking to reduce the income tax rate of individuals from the present 32 percent to 15 percent for the country to fully benefit from the Association of Southeast Asian Nations (ASEAN) Integration in 2015 and to help the country's workforce cope with inflation and the higher costs of living.
    Add your Story Add your Story