Got a tip? Send it to us at manila@coconuts.co.
Amid persistent calls to lower income tax rates in the Philippines, the head of the Bureau of Internal Revenue (BIR) remains defiant to the proposition.
BIR Chief, Kim Henares said that while she personally welcomes a cut in taxes, she cannot say the same as BIR chief.
“I don’t have any problem lowering taxes because I will benefit, right? Because I’m a compensation income earner so my taxes will also be lowered. But what will happen to government services?” Henares told Cathy Yang in the maiden broadcast of Market Edge on ANC.
Henares said should the House of Representatives push with the bill that seeks to lower taxes, there will be “no stop-gap measure.”
“If you lower the tax rates, then you will lower our collection goals. If you lower our collection goals, you lower your expenditures because you cannot spend something you do not have,” Henares said.
She cited as example that if the measure in Congress means a reduction of P35-billion in taxes and the Department of Education has a budget of PHP60-billion, half of the education budget will be cut.
“You have to slash one half of that? You have to make a choice,” she said.
Henares added lowering income taxes is not for her to decide but she warned lawmakers against passing the bill.
“There’s no stop-gap measure. If you want to lower it, then you have to compensate it with something,” she said.
“Who will make those sacrifices? The legislator should also be accountable for that,” Henares added.
Henares said Philippines needs money to reduce poverty but if the low income tax measure is passed, the government will not be able to meet its poverty-reduction goals.
Bayan Muna Representative Neri Colmenares filed House Bill 5401, seeking to “exempt income of families earning below PHP396,000 per year to preserve the monthly living wage of PHP33,000 from income taxation,” among others. (ANC)
Photo: News clip
This article has been re-published with permission from ABS-CBNnews.com.
Reader Interactions