More studies needed before lowering income tax rate - Palace

ABS-CBN News

Posted at Mar 09 2014 04:13 PM | Updated as of Mar 10 2014 12:13 AM

MANILA -- Malacanang said more studies and consultations are needed if Congress plans to push a bill that seeks to reduce an individual’s income tax rate to 25% from the current 32%.

In an interview with radio dzRB, Communications Secretary Herminio Coloma Jr. said any adjustment in the country’s taxes will affect its spending program, especially for the needed infrastructure.

“‘Yun pong pagbubuwis ay mahalagang aspeto ng kabuhayan ng ating bansa at kailangan po ang masusing pag-aaral. Kasi po kapag pinalitan ‘yung mga batayan ng pagbubuwis ay maapektuhan ang kinakalap na rentas internas ng ating bansa na siya namang pinagkukuhanan ng pananalapi para tustusan ang iba’t ibang programang pangkabuhayan ng ating pamahalaan,” he said.

Senator Juan Edgardo Angara earlier filed Senate Bill 2149, which seeks to reduce the income tax rate by 2017.

“The general policy is that taxation must be uniform but it also must be progressive. Dapat nakabase siya sa kakayahan ng taxpayer na magbayad,” Angara said in a statement.

“Karamihan nga sa ating mga kababayan ay lugmok sa kahirapan, 30 to 40 percent are living below the poverty line. We must do everything we can to help them and I think this is one way we can look at,” he added.

Coloma said further studies are needed in order that the end result will be accepted by all.

“Dahil ‘yung iba-ibang alternatibo pong pinag-uusapan, may iba-iba ring implikasyon ‘yan sa dami ng pananalapi na maaaring makalap, at magkakaroon din ng epekto sa iba’t ibang sektor na may taya dahil sila ay maapektuhan dito,” he said.