National Internal Revenue Code of 1997

Bam: Let’s not burden Filipino families with higher tax and prices

Any tax measure that burdens Filipino families with higher prices would go through the proverbial eye of the needle in the Senate, assured Sen. Bam Aquino.
 
“Any measure that will increase prices, babantayan namin iyan. For me, it’s something that every Filipino family doesn’t want to see, an increase in prices,” said Sen. Bam in a television interview.
 
“Walang pagtaas ng tax na hindi maaapektuhan ang mga Pilipino,” he added.
 
The senator made the pronouncement in connection with the government’s plan to impose P6 to P10 excise tax on diesel under its tax reform agenda.
 
Sen. Bam said the government’s plan “is little bit of a hard sell” but senators are expected to tackle the measure during plenary debates where they will listen to positions of different stakeholders.
 
“I think during the plenary debates, a lot of figures will be presented to us. We will listen to reason and different parties. Titingnan natin kung ano ang epekto nito sa presyo ng bilihin at sa national budget,” said Sen. Bam.
 
In particular, Sen. Bam wants to determine the exact effect of the planned imposition of excise tax on diesel fuel to prices of goods and agricultural products transported by diesel-powered vehicles to markets in different parts of the country.
 
In the 17th Congress, Sen. Bam has filed Senate Bill No. 697 that seeks to revise the current income tax bracket set by the National Internal Revenue Code, which was passed in 1997.
 
The measure seeks to amend Section 24 of the National Internal Revenue Code of 1997, as amended, by adjusting the levels of net taxable income and simplifying the nominal tax rates for the purposes of computing the individual income tax. 
 
If enacted into law, Sen. Bam said the measure effectively lowers the taxes on the 22-million Filipino working class, allowing them to enjoy a higher net income and increase their purchasing power.

Senate Bill No. 670: Sale of Electricity by Generation and Distribution of Companies and Electric Cooperatives

The cost of electricity rose once again in February this year, owing to higher power supply agreements as Filipinos braced themselves for the summer months when electric bills normally skyrocket. The Philippines has one of the most expensive electricity costs in Southeast Asia, having the third highest tariffs for residential electricity whereas our neighbors’ electrical distribution is heavily subsidized by their governments.

High power rates are debilitating to the average household or business that already struggle to cover the costs of many other necessities such as water, gas, and of increasing necessity nowadays, internet.

This bill seeks to amend the National Internal Revenue Code of 1997, as amended, by removing Value Added Tax from the sale of electricity, at all stages: generation, transmission, and distribution, by all electric companies and cooperatives.

A tax relief on electricity will result in a significant gain in disposable income for Filipino families, as well as for businesses who benefit from lower operating costs and more profit left for expansion and investment. VAT-exempt electricity will surely light up many more Filipino’s lives.

In view of the foregoing, the passing of this bill is earnestly sought.  


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Senate Bill No. 698: Reducing the Corporate Income Tax Rate

We are working towards a vision of the private sector where bustling local enterprises coexist, cooperate, and collaborate with foreign companies, all contributing to a fair, innovative, and socially conscious Philippine business environment.

Over the past years, macroeconomic factors suggest that we are on the right track with our stellar economic growth, much improved credit ratings, and the highest capital investment of US$8.74 billion from inward FDI in the last six years with over 58,000 associated jobs created in 2015.

However, there is still a lot we can do to attract and retain foreign investors to stimulate even more economic growth and achieve prosperity for more Filipinos. Furthermore, we must seize the opportunity to be a leader in the ASEAN as we harmonize our economies as a region.

It is imperative that we evaluate our corporate tax system. At present, we have the highest corporate income tax rate in the ASEAN at 30%. When the ASEAN Economic Community Declaration was signed, most members began to lower their own corporate income tax rates. Thailand gradually reduced its corporate income tax rate from 30% to 23%, and now it stands at 20%. Vietnam also lowered its corporate income tax rate from 25% to 20%. The average corporate income tax rate in the ASEAN is at 23%.

For the Philippines to attract more investors and to lure in more capital, we must be able to compete with our peers. Though this may result in a lower revenue collection for the government, the multiplier effect of having more investment, expanding our tax base and increasing economic activities will be tremendous.

In view of the foregoing, immediate approval of this bill is earnestly sought.


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Sen. Bam: Filipino Workers Should Have Lower Taxes

Good news for Filipino workers burdened by high taxes!

Filipinos burdened by high taxes can heave a sigh of relief once a bill filed by Senator Bam Aquino seeking to review and reform current tax system is enacted into law.

In explaining Senate Bill No. 1942, Aquino said there’s an urgent need to revise the current tax bracket set by the National Internal Revenue Code, which was passed in 1997.

“Now is the time to get this updated and be attuned to the present time,” Aquino stressed.  “We cannot continue using outdated tax brackets and a threshold which were approved fifteen years ago.”

“The salary of a management level employee fifteen years ago will probably be equivalent to the salary of an entry level call center agent today because of inflation and other economic factors,” he added.

Under Aquino’s bill, Section 24 of the National Internal Revenue Code of 1997 will be amended by adjusting the levels of net taxable income and simplifying the nominal tax rates in computing individual income tax, based on current prices.

“The Tax Reform Act effectively lowers the taxes on the Filipino working class, allowing them to enjoy a higher net income and increasing their purchasing power,” Aquino said.

The senator also assured that the bill would not impose a burden on the micro, small, and medium enterprises (MSMEs) that comprise a majority of employers in the Philippines.

With a just tax system, Aquino believes that it will encourage citizens to declare their true income and pay their taxes.

“It also supports the government’s push for inclusive growth while ensuring that government is still able to raise funds for social programs that directly benefit the poor,” Aquino said.  “It is a win-win solution that offers the greatest benefit to the greatest number of Filipinos.”

Aquino added that the bill also adjusts the tax level of the upper one percent (1%) of taxpayers, making sure that the government is able to collect a larger share of income from those who can afford to pay more.

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