Employees Earning P21,000 Monthly And Below To Pay Zero Tax On Revised Comprehensive Tax Reform Under Pres. Duterte
Employees receiving a monthly income of P21,000 will be
exempted from paying personal income tax (PIT), allowing over P20,000 in
savings annually, under the first package of the comprehensive tax reform plan
(CTRP) of the Duterte administration.
Finance Undersecretary Karl Kendrick Chua said the revised
CTRP Package One under House Bill 4774 that was filed by Representative Dakila
Carlo Cua retained the DOF-proposed exemptions on the first P82,000 in earnings
from the 13th month pay and other bonuses received by taxpayers.
This proposal will also increase the threshold for those who
will pay zero tax under the tax reform plan.
Cua has agreed in principle to tackle the bill as a package,
which puts to rest concerns that the Congress might abandon the revenue-generating
measures of the proposal and only pass the revenue-eroding portion of lowering
income tax rates.
“Tax rates for 99 percent of taxpayers will gradually
decrease over the next few years of implementation under HB 4774,” Chua said.
“The simplified tax system will increase the take-home pay
of most individuals, putting more money in people’s pockets, which they can use
to save for the future or spend on their families’ needs, such as for tuition
or school expenses of their children,” Chua added.
Cua, who chairs the House panel that will study the CTRP,
filed HB 4774 seeking various amendments to the National Internal Revenue Code
last January 17.
HB 4774’s proposed amendments to the Tax Code call for the
lowering of PIT rates and a corresponding set of measures to compensate for the
revenue losses arising from the reduced tax rates and raise much-needed funds
for the Duterte administration’s public investment program.
Cua’s bill retained the original DOF proposal of exempting
those with a net taxable income of P250,000 and below, but included a provision
exempting the first P82,000 in 13th month pay and other bonuses from the
computation as well.
The revised package under HB 4774 also includes lowering the
rates for estate and donor’s taxes, adjusting automobile and fuel excise taxes,
and expanding the value-added tax (VAT) base but retaining the exemptions
enjoyed by senior citizens and persons with disabilities.
Complementary reforms to this revised tax package include
introducing a sugar-sweetened beverage tax, indexing the motor vehicle user’s
charge to inflation, and granting an amnesty to past estate tax cases.
The estate tax, which is a tax imposed on the privilege of
transferring ownership of properties upon the death of the owner, will also be
reduced from the current maximum rate of 20 percent to 6 percent, under HB
4774.
Source: Manila Bulletin
Employees Earning P21,000 Monthly And Below To Pay Zero Tax On Revised Comprehensive Tax Reform Under Pres. Duterte
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April 26, 2017
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