TO ADDRESS PLIGHT OF GOVT WORKERS, ANGARA PUSHES ANEW
FOR LOWERING OF TAX RATES

Amid the government employees' outcry on the taxing of their bonuses and allowances, Senator Sonny Angara on Tuesday reiterated the need to reduce the country's income tax rates to ease the financial burden of Filipinos, especially of the impoverished state workers.

"Klarong-klaro yung puntos ng mga representante ng iba't ibang government employees associations na hirap na hirap na talaga ang ating mga government workers at sana, huwag na buwisan. 'Yan din naman ang intensyon ng ating mga panukalang batas," said Angara, chair of the Senate committee on ways and means.

Among his proposed tax reforms are the reduction of individual income tax rates and the increase of the tax exemption ceiling of the 13th month pay and other benefits.

Senate Bill No. 2149 aims to adjust the tax brackets and to lower the maximum tax rate from 32 percent to 25 percent while SB No. 2157 seeks higher tax exemption for the 13th month pay from the current P30,000 to P75,000.

Angara noted that it has been 17 years since the National Internal Revenue Code was enacted and yet, the country's tax system has not been amended since.

"Seventeen years na ang nakakalipas, hindi pa rin natin inaadjust so isipin nalang natin kung gaano ka-hindi makatarungan 'yan para sa taumbayan," he said.

During Tuesday's ways and means hearing, Dr. Mario Lamberte, an economist and team leader of the Advancing Philippine Competitiveness (Compete) project, pointed out that tax brackets should at least be adjusted every three years.

Meanwhile, Angara has expressed his frustration over the failure of Bureau of Internal Revenue (BIR) to submit documents and figures he has requested eight months ago.

"'Yun nga ang frustration namin. Kapag pagtaas ng buwis, ang bilis magbigay ng datos ng ating BIR officials. Kapag gusto nating tulungan ang pangkaraniwang tao at gusto nating bawasan ang buwis, walong buwan na tayo humihingi ng datos pero wala pa din. Huwag naman sana ganun," he said.

One of the documents Angara has requested in January was the data showing the projected revenue loss if the bill reducing income tax rates will be enacted into law.

The Department of Finance (DOF) has earlier stated that the government stands to lose at least P43 billion by 2017 if SB 2149 will be passed, but Finance Undersecretary Jeremias Paul said it is only a rough estimate.

"Bilang senador, gusto naming na kapag nagdesisyon kami, alam namin yung totoong mararamdaman ng ating pamahalaan at ano yung benepisyong mapupunta sa ating mga kababayan," Angara said.

Other pertinent documents the DOF has failed to submit are the consolidated versions of the Fiscal Incentives bill and the Tax Incentives Management and Transparency bill, which the Aquino administration has certified as priority measures.