Gov’t willing to consider lower personal income tax

The government is willing to consider the proposed measure lowering personal income taxes in the country. However, there’s a catch. “New and additional sources of tax revenues” will also be looked into by the government to recoup any foregone revenues resulting from lowered personal income taxes, according to Presidential Communications Operations Secretary Herminio Coloma Jr.

“Government is open to consider proposals on changing the income tax rates and continues to work with Congress on this matter,” Coloma said in a news conference in Malacañang.

“It is also important to identify new and additional sources of tax revenues that will offset any reduction in collection of income taxes,” he added.

Coloma said the Department of Finance prefers a “comprehensive review” of the present taxation system so needed reforms may be instituted.

Sen. Chiz Escudero earlier called on President Aquino to certify as urgent a bill seeking to reduce the personal income tax rates to “compassionate levels.”

Escudero said the income tax rate must be made less complicated and less cumbersome.

Earlier, Sen. Sonny Angara also pushed for the passage of a bill reducing personal income tax rates as the best goodbye gift of the President to the people.

At present, the government collects a 32 percent tax on the monthly income of employees in the country.

The Philippines has the second highest individual income tax rate in the region at 32 percent next to Thailand and Vietnam’s 35 percent.