‘Noy’s stand vs income tax cuts not binding on Congress’

MANILA, Philippines - While lawmakers fully understand President Aquino’s opposition to the bill seeking to lower individual income tax, Congress can act on its own in approving the measure, Speaker Feliciano Belmonte Jr. said yesterday.

Belmonte said there’s a good chance the bill, which seeks to adjust the 1997 individual income tax to inflation, would be passed as the measure enjoys support in Congress and the public.

“Well actually, that’s his (Aquino) opinion (against lower income tax), he’s the outgoing president, he would like to leave his own kind of legacy… but definitely that’s not necessarily binding on anybody who may have different outlook,” Belmonte said.

“Sooner or later that will be passed. Who would ever thought that we’d be able to pass the Sin Tax Law? Or the Sin Tax Bill? Or the Fair Competition Act?” he said.

He said Congress under the Aquino administration was able to pass landmark measures that had been languishing for decades.

He said in the event the 16th Congress fails to approve the measure, lawmakers would still pursue its passage under a new administration.

The measure, which is set to be reported out in the plenary by the House committee on ways and means, seeks to adjust individual income taxation tiers that have remained unchanged since 1997 despite inflation.

Under the bill, those earning P180,000 and below a year would be exempt from paying taxes, while those who earn from P180,000 to P500,000 would pay nine percent.

Individuals whose yearly income is from P500,000 to P10 million would pay 17 percent, while those with more than P10 million annual income will have to pay 30 percent.

At present, those earning P500,000 and above are treated the same and are taxed at 30 percent.

Leyte Rep. Martin Romualdez, leader of the independent bloc, urged his colleagues in the House of Representatives to just approve the measure and let Aquino decide whether to support or suppress the will of his “bosses.”

“Let Congress pass this very sensible bill to show its compassion to the workers’ plight proposal and give the final decision to the President,” Romualdez said.

“At the end of the day, whatever the President’s decision he will arrive at will make or break his advocacy in championing the interest of his bosses. He will be accountable to that,” he said.

Deputy Minority Leader and 1-BAP party-list Rep. Silvestre Bello III called on Belmonte to include the measure in the plenary agenda when Congress resumes session next week.

Pasig City Rep. Roman Romulo, one of the authors of the bill, said the present tax rates are harmful to households because of inflation.