Palace backs proposals to reduce tax rates

MANILA, Philippines - Malacañang on Monday expressed support for the proposal of Senator Sonny Angara to reduce the individual income tax rates.

At a televised press briefing, Presidential Spokesperson Edwin Lacierda echoed the statement of Bureau of Internal Revenue Commissioner Kim Henares, saying they will look into such proposal.

But Lacierda said pending measures regarding the Tax Reform Act of 1997 should get the primary attention first.

"Let's just focus first on the tax reform bills that are currently in the pipeline of the legislature. And then next year, let's study and see if there is a need to restructure based on the bill of Senator Angara," Lacierda said.

Lacierda also hoped that the proposal to lower income tax rates would be among the achievements of the Aquino administration, but admitted that it requires a "comprehensive study."

"Who would not want to pay lower tax? But again we have to balance all interests. That's the only concern of the government," Lacierda said.

Angara's Senate Bill No. 2149 aims to reduce the rates of individual income tax from the current 32 percent to 25 percent by 2017. It will also adjust the individual income tax brackets.

Stressing that many Filipinos are already in dire poverty, the neophyte senator said the basis of tax rates should be on the capability to pay.

He said progressive taxation will help the Aquino administration in reaching its goal of inclusive growth for Filipinos.