Metro Manila (CNN Philippines, May 5) — Some lawmakers are calling a new tax reform bill, which will lower the personal income tax but will increase taxes on some commodities, anti-poor.
This, after the House Committee on Ways and Means approved on Wednesday a proposed measure to make the personal income tax of regular wage earners 25% — from the current 32% — starting July 1.
On the other hand, the bill wants to increase excise tax on petroleum, automobile, and sugar-sweetened drinks to offset a P140-billion loss, according to finance officials.
The increase in excise tax will generate about P250 billion, though ACT Teachers Party List Representative Antonio Tinio said this would only burden the poor.
“Yung maralita in the first place, wala naman pakinabang na makukuha mula sa lowering of income tax pero sila ang mapipiga ng husto dito sa mas mataas na presyo dulot ng bagong buwis,” Tinio said.
[Translation: In the first place, the poor will not benefit from the lowering of income tax, but they will be the ones to suffer as prices of commodities go up due to the increase in excise tax.]
The bill will also repeal 79 special laws which exempts cooperatives and state universities and colleges, among others, from paying value-added tax (VAT) .
COOP-NATCCO Party-list Rep. Anthony Bravo said the VAT exemption of cooperatives should not be removed because they were non-profit social enterprises.
“Ito rin po ang takbuhan ng mamamayang Pilipino … kung sakaling kinulang ng pangtuition ang kanilang anak, merong emergency para sa medical ang miyembro ng pamilya,” Bravo said.
[Translation:Filipinos still depend on cooperatives in case they are short on their children’s tuition, or even for medical emergencies in the family.]
Removing the VAT exemption of cooperatives would affect its 14 million members, most of whom coming from marginalized sectors, Bravo added.
